Facing China’s overcapacity and low-price dumping in the steel industry, countries and regions such as Vietnam, India, South Korea, the European Union, Colombia, and Taiwan have begun to impose tariffs or initiate anti-dumping investigations in an attempt to protect their domestic steel industries. This trade defense battle is gradually spreading globally, putting pressure on the steel market to restructure.
For most Southeast Asian countries, this resistance is unprecedented. Since 2015 to 2016, China has been exporting a large amount of steel to Southeast Asia, but countries like Vietnam, Indonesia, Malaysia, among others, have now established large local steel industries and domestic markets to protect their own industries.
Recently, countries including the United States, Mexico, Brazil, have strengthened import restrictions on Chinese steel products, sparking a new round of global steel industry defense.
The Vietnam Steel Association (VSA) estimates that (link) Vietnam’s steel demand will reach 25 million tons this year, an increase of about 5% from last year, with production growth potentially reaching 10%.
VSA Chairman Nghiem Xuan Da stated, “This growth is attributed to domestic economic resilience, increased infrastructure investment, and strengthened regional partnerships.”
However, this wave of growth also faces significant concerns. Bloomberg reported that Vietnam has become the largest single importer of Chinese steel, serving as a destination for Chinese steel enterprises to offload surplus products in recent years.
In the face of overcapacity, a prolonged downturn in the real estate industry, and shrinking export markets for Chinese steel manufacturers, Vietnam has emerged as an important export destination due to its proximity, easy market access, and ability to quickly open up sales if prices are low.
Last year, Vietnam set a historical record for steel imports from China. Bloomberg reported that since 2020, China’s steel supply to Vietnam has increased by nearly 500%.
Under pressure from local businesses, the Vietnamese government imposed temporary tariffs of up to 28% on Chinese hot-rolled steel products starting in February this year, and over 37% on galvanized steel. This move officially marks the beginning of Vietnam’s steel anti-dumping defense battle. Bloomberg believes that while these measures are nominally temporary, they may become permanent tariffs in the future.
Vu Tran, former regional manager of Charoen Pokphand Group, pointed out that this allows Vietnamese businesses to compete fairly with Chinese products on costs. He said, “When Chinese manufacturers can no longer dump at low prices, Vietnamese steel mills can compete with them on costs.”
As the world’s second-largest crude steel producer, the Indian government announced on Monday (April 21) that it will impose a 12% temporary tariff on certain imported steel products, known locally as “safeguard duty,” to curb the influx of low-priced steel mainly from China.
The influx of Chinese steel products in recent years has forced some Indian steel mills to reduce production capacity and even consider layoffs. As a result, India has become one of the countries taking action to protect its domestic steel industry.
The Indian Finance Ministry announced that the 12% temporary tariff on specific imported steel products will be implemented for 200 days. This marks a significant trade policy shift for India, following similar moves by countries in response to the US-China trade war that began in April.
Indian Steel Minister H. D. Kumaraswamy stated in a release, “This measure will provide crucial breathing space for local steel mills, especially small and medium-sized enterprises, as they face enormous pressure from increased imports.”
Government data indicates that for the second consecutive year in the 2024/25 fiscal year, India became a net importer of finished steel, with imports reaching 9.5 million tons, the highest in nine years.
According to Reuters, an Indian steel industry executive stated, “This decision was expected, and we will now observe whether it can help stabilize industry profits and limit the influx of cheap steel.”
“Whether direct or indirect, Chinese steel products are impacting the entire world,” he added.
Outside of Asia, many countries are also stepping up their supervision of Chinese steel products. In February this year, US President Trump announced a 25% tariff on all imported steel products. These tariffs apply to most countries unless exempted (such as Canada and Mexico).
The Trump administration has also set new standards for steel products in the North American region, requiring imported steel products to be “melted and poured” in the North American region to curb entry of low-processed Chinese steel products into the US market.
In February 2025, the Ministry of Industry, Trade, and Resources of South Korea announced a temporary anti-dumping duty of up to 38% on steel plate products from China, mainly used for shipbuilding and construction. This move comes in response to complaints from local businesses about the influx of low-priced Chinese steel products causing substantial harm to the domestic industry.
Moreover, on March 4, 2025, the South Korean government initiated an anti-dumping investigation into hot-rolled steel plates imported from China and Japan, following a complaint by Hyundai Steel accusing the products of unfair low-priced imports damaging the domestic industry.
On March 24, the Colombian government announced that it will impose a 41.74% anti-dumping duty on galvanized steel and flat steel plates (with a thickness not exceeding 2.5 mm) from China, and a 94.64% anti-dumping duty on galvanized steel sheets, valid for five years.
Previously, in October 2024, Colombia imposed a 35% tariff on steel bars imported from China to counter China’s low-cost dumping practices.
On January 13, 2025, the European Commission issued Implementing Regulation No. 2025/81, imposing a temporary anti-dumping duty on tin-plated iron or non-alloy steel flat-rolled products from China, with rates ranging from 14.1% to 62.6%.
This measure is based on an anti-dumping investigation launched on May 16, 2024, preliminarily concluding that Chinese products entered the EU market at prices below fair value, causing harm to the local industry.
On March 11, 2025, the Taiwanese Ministry of Finance announced an anti-dumping investigation into specific hot-rolled flat-rolled steel products manufactured in China. This move aims to determine if Chinese steel products are entering the Taiwanese market at unfair prices, causing damage to the local industry.
With China’s steel production rapidly increasing in recent years and targeting Latin American countries as an alternative market to the US, countries such as Mexico, Chile, Brazil, and others in Latin America have reacted to counter Chinese steel dumping by imposing up to 50% tariffs on steel imports from countries that have not signed free trade agreements (FTA).
According to Central News Agency reports, Mexico, Chile, and Brazil announced high tariffs on steel imports from countries that have not signed FTAs.
Mexico imposes tariffs of up to 50% on steel imports; Chile imposes a 35.4% tariff on steel balls and a 24.9% tariff on steel bars. Brazil has also raised tariffs from 10.8% to 25%.
With more countries planning or implementing tariffs, Bloomberg Intelligence estimated in April that about 50% of China’s steel exports are affected by trade barriers – Chinese exports could decrease by up to 14% this year.
In March 2025, S&P Global Ratings forecasted that China’s steel exports this year could decrease by 15% to 20%, potentially requiring a restructuring of supply chains and market strategies in the future.
According to S&P Global’s report in April, there are about 19 anti-dumping litigation cases related to Chinese steel exports. However, in 2025, export volumes may enter a downward trend due to regional tariff policies, trade protectionism, and multiple pressures on the global steel market structure.