Final Anti-Dumping Tariffs on Coated Steel from China and South Korea: A “Unshackling” for Domestic Steel, but New Pressures May Emerge

Vietnam – The decision by the Ministry of Industry and Trade to officially impose anti-dumping tariffs on coated steel products from China and South Korea took effect on August 14, 2025. With the highest tax rates reaching 37.13% for Chinese goods and 15.67% for South Korean goods, this policy is expected to create a solid “shield” to protect the domestic steel industry from the pressure of unfair competition.

A Highly “Protective” Decision After a thorough investigation, the Ministry of Industry and Trade concluded that Chinese and South Korean companies had dumped coated steel on the Vietnamese market, causing significant damage to the domestic industry. The decision to apply official tariffs for five years, equivalent to the temporary tariffs issued earlier, is seen as a resolute move by Vietnam to implement trade defense measures in line with World Trade Organization (WTO) regulations.

The investigation was initiated in mid-2024 at the request of five major players in the Vietnamese steel industry, including Hoa Sen Group, Nam Kim Steel, Ton Phuong Nam, Ton Dong A, and China Steel & Nippon Steel Vietnam. This is a testament to the effective coordination between the state and businesses in protecting the legitimate interests of the domestic manufacturing sector.

Positive Impacts and Potential Risks According to economic experts, the tariff decision will bring many positive effects, especially for domestic coated steel manufacturers. Mr. Le Hoang, an expert in construction materials, commented, “The tariffs will give Vietnamese companies like Hoa Sen and Nam Kim more room to compete on price and output. Low-cost imported goods are no longer a major threat, which will help these companies stabilize production and increase market share.”

Reports from several securities firms also forecast that the anti-dumping tariffs will help the market share of domestic enterprises continue to grow. For example, Hoa Sen (HSG) could increase its market share from 29% to 30% in 2025 and continue this momentum in the following years. Moreover, with reduced competitive pressure, domestic coated steel prices are expected to recover from the third quarter of this year, helping to improve profit margins for businesses.

However, not all impacts are positive. An expert from the Vietnam Steel Association (VSA) warned that an increase in domestic steel prices due to reduced competition could put pressure on downstream industries, especially construction and manufacturing. “Rising input costs will increase production expenses, which could affect construction projects and make mechanical and manufacturing products less competitive compared to imports from other countries,” the expert said.

Responses from International Partners Although there has been no official reaction from the Chinese and South Korean governments, according to international practice, these two countries may consider retaliatory measures. In the past, countries have often filed lawsuits with the WTO to oppose the imposition of tariffs or applied similar trade defense measures against Vietnamese exports.

Notably, this is not the first time Vietnam has used trade defense measures. This policy is an essential tool to protect the economy from unfair trade practices. However, experts also recommend that Vietnam prepare for scenarios to deal with reactions from international partners, while continuing to promote trade and improve product quality to minimize risks.

The Way Forward for Domestic Businesses The decision to impose anti-dumping tariffs is a strong boost for the Vietnamese steel industry. However, businesses cannot rely solely on this “shield.” Experts emphasize that this is an opportunity for domestic companies to restructure, invest in technology, and research and development to create higher-value products that meet the increasingly demanding needs of the market. Enhancing core competitiveness will be the decisive factor for the sustainable development of the steel industry in the future.

Source: Vietstock and collected from the Internet.