The US Commerce Department on Monday formally opened an investigation into allegations that Chinese steel producers are diverting shipments through Vietnam to avoid American import tariffs, according to a legal filing.
The probe will determine whether imports of hot-rolled and cold-rolled steel made in China that is further processed in Vietnam are circumventing previous anti-dumping and anti-subsidy duties on Chinese steel, the Commerce Department said in a filing with the International Trade Commission.
The move adds a new twist to heightened trade tensions between the United States and China over steel and aluminium imports from China, which US producers say is flooding world markets with excess production as demand wanes at home.
The Commerce Department has levied anti-dumping and anti-subsidy duties on a range of steel products from China, in some cases imposing tariffs of more than 200 per cent.
A petition filed in September by ArcelorMittal USA , Nucor Corp, AK Steel Holdings Corp and United States Steel Corp alleges that Chinese producers diverted their steel shipments to Vietnam “immediately” after the duties were imposed.