Vietnam imposes tariffs on goods imported from China

Vietnam imposes tariffs on goods imported from China

Vietnam imposes anti-dumping duties on certain goods imported from China, which circumvent the tariffs imposed by the United States in its trade dispute with Beijing.

After five months of review, the Ministry of Industry and Trade of Vietnam decided to impose a temporary anti-dumping duty of 2.46% to 35.58% on several aluminum products originating in China from June 5.

Vietnam became one of the biggest beneficiaries of the US-China trade dispute last year, as Chinese exporters who are struggling to deal with tariffs are using Vietnam as an alternative low-tariff place to produce products for export to the United States.

But some manufacturers just relabel the Chinese-made products on the “Made in Vietnam” label for transshipment to the United States.

Hanoi-based financial analyst firm SSI Research said in a report on Monday (June 10) that Vietnam’s anti-dumping tariff is ‘an effective response from Vietnam to the US Department of Commerce’s tax evasion on Vietnamese exports of aluminum profiles’.

The report said that these tariffs “is a very bold move for Vietnam,” because Vietnam has become the country that has benefited the most from the (US-China) trade war.

SSI’s report found that after the US-China trade dispute broke out in 2018, China’s exports of semi-finished aluminum parts doubled to 62,000 tons. Among them, “it is believed that a considerable amount of goods are from China to avoid anti-dumping and countervailing duties.”

Biswas, the chief economist at HIS Markit Asia Pacific, said: “Some of the products imported from the United States were detected to be from Vietnam, but they were eventually found to be from China in an attempt to prevent Chinese goods from being subject to anti-dumping duties in the United States.”

Economists believe that the surge in imports from China has hurt Vietnam’s own aluminum industry and put Vietnam at risk of more censorship by the US President Trump administration. Vietnam’s 120-day anti-dumping tariff will help protect Vietnam’s stable relationship with the Trump administration to date, on the grounds that it will prevent the transshipment of goods from China to the United States without paying customs duties.

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