U.S. places Import Duties of More Than 400% on Vietnamese Steel

In a recent move to combat U.S companies avoiding the trade war between China, The U.S Commerce Department have imposed duties of over 400% on steel that has been imported from Vietnam, and have accused some American businesses of rerouting shipments from the Southeast Asian nation, to purposefully evade the levies that have been placed on China.

In the first three preliminary circumvention prevention rulings on Vietnamese steel, the Commerce Department have said that products that are being produced in Korea and China were being routed to Vietnam for ‘minor processing’ before being exported to U.S soil as corrosion resistant steel products and other steel products. Custom Officials at ports in the U.S have been given clear instructions to actively collect cash deposits at rates of over 400% on imported steel that originate in Vietnam.
The U.S is strengthening its position against Vietnam, who is one of their major trading partners, and an economy who is seeing direct benefits from the Trump Administrations trade war with China. When U.S President Trump was questioned last week regarding his views about placing import tariffs on the nation Trump described the country as “almost the single-worst abuser of everybody.”

Asia Pacific Chief economist at ING Bank Rob Carnell said in a recent interview that it is no surprise that many companies will try to route their products through other countries such as Vietnam and Cambodia, “It’s a no-brainer,” he said. “You increase the cost and people are going to try and find a way to avoid it. It’s human nature.” In another recent case revealed by U.S customs, six American companies are under investigation for their alleged involvement trying to circumvent anti-dumping duties, while importing and misclassifying Chinese made Carbon pipe fittings, and routing the import through Cambodia.

Vietnam have been very prominent in their current position to reduce its trade surplus with the U.S and are currently implementing measures to reduce Chinese manufacturers rerouting their goods through the countries ports, for exportation to the U.S in a bid to avoid paying such high tariffs on their importation. The U.S embassy in Hanoi, have said that this week they are holding talks with officials in the country, and hope to come to an agreement in the near future. They are looking for Vietnam to take drastic steps to address the issues surrounding the bypassing of the tariffs.

Harold Wright – Bennet Global

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This release was published on openPR.