In response to mounting criticism from local producers who argue that Chinese steelmakers are hampering domestic production, Mexico has instituted a significant 80% tariff on specific types of steel imports from China. The newly imposed duty specifically targets Vietnamese exports of cold-rolled steel sheets. Notably, certain groups are exempted from the tariff if they can substantiate that the steel originates from a country other than China.
Under the revised tariff structure, Vietnam's leading steel producer, Hoa Phat, faces a duty of nearly 12%, while Posco Vietnam will be subject to a duty of 26%. The move comes as a countermeasure against alleged practices of Chinese steel producers selling surplus abroad at prices below the market rate, commonly referred to as dumping. To combat this, some steel manufacturers are attempting to bypass anti-dumping measures by diverting their steel shipments to other countries.
This is not the first time Mexico has taken steps to address the issue. In August, the country raised duties to 25% on certain steel imports from nations lacking a free trade agreement, including China. The United States has also expressed concerns regarding its steel and aluminum imports from Mexico, citing a perceived lack of transparency about the origin of these products.
The global impact of Chinese steel exports is evident, with Latin America witnessing a decline in steel production due to an influx of imports. China has become the predominant steel supplier to the region, accounting for nearly one-third of all steel products imported into Latin America. Meanwhile, Brazilian steel producers have urged their government to implement a 25% tariff on steel imports from China, though no action has been taken as of yet.
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