Vietnam will impose anti-dumping tariffs on steel from China, following South Korea and other nations in fighting back against surging supplies from the world’s biggest producer.

The Southeast Asian nation will impose temporary tariffs on some hot-rolled coil starting from early March, according to a statement from the Ministry of Industry and Trade on Friday. Outside China itself, Vietnam is the biggest single buyer of Chinese steel, and hot-rolled coil is a major export product.

China’s sent the most steel overseas in nine years in 2024, as its producers turned to global markets to offset a deep construction slowdown at home. That set the stage for President Donald Trump to propose a blanket 25 percent tariff on all US imports, and has prompted nations from South Korea to Brazil and India to consider levies.

The flurry of protectionism will pile pressure on Beijing to rein in its billion-ton steel industry after several years of slowing domestic demand. Steel futures in China fell as much as 1.8 percent, while steelmakers in Vietnam advanced.

Recent tariff decisions “should incentivize the Chinese government to launch another round of supply reform” to boost supply discipline and improve industry profitability, analysts including Jack Shang from Citigroup wrote in a note.

Vietnam’s temporary tariffs of between 19.38 percent and 27.83 percent will come into force on March 7 and last for 120 days. China exported about 8 millions tons of HRC to Vietnam last year, and the tariffs would likely cover about 50 percent of that volume, Citigroup said, citing discussions with industry players.

The anti-dumping probe was triggered by Hoa Phat Group and Formosa Ha Tinh Steel Corp, two major Vietnamese steelmakers who requested an investigation of imports from India and China last year. The government won’t go ahead with duties on India at this moment, it said.
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A worker processes stainless steel rings for bicycle for export at a factory in Hangzhou, in eastern China's Zhejiang province on February 20, 2025. AFP

Vietnam hits China with steel tariffs to fight surging exports