The petition alleges that steel imported from these countries is sold in the U.S. below its market value, which negatively affects the local industry. In addition, it argues that Brazil, Canada, Mexico and Vietnam benefit from government subsidies.
A group of U.S. steel producers and unions, led by Steel Dynamics, has filed a petition with the Department of Commerce and the International Trade Commission (ITC) to Imposing anti-dumping and countervailing duties on imported steel from 10 countries: Australia, Brazil, Canada, Mexico, Netherlands, South Africa, Taiwan, Turkey, United Arab Emirates and Vietnam.
Applicants include: Steel Dynamics, Nucor, Wheeling-Nippon and US Steel, along with the United Steelworkers Union and AFL-CIO. However, US Steel, Wheeling-Nippon and United Steelworkers are not involved in the case against Canada. Barry Schneider, president of Steel Dynamics, noted that between the first half of 2023 and the first half of 2024, Imports of corrosion-resistant steel from these countries increased by 57%, from less than 1.25 million tons to almost two million. This increase has affected the volumes, prices and profits of the steel industry in the USA.
Corrosion-resistant steel is essential for industries such as automotive, appliance, and construction. This type of steel is made by coating hot- or cold-rolled steel with zinc or aluminum and, in some cases, with additional coatings such as paint or varnish. Vietnam has been singled out for the highest dumping margin, at 158.8%, while the Netherlands has the lowest, at 15.6%.
David McCall, president of the United Steelworkers, stressed that Vietnam is expanding its steel industry at the expense of American workers and stressed the need to avoid the mistakes made in the past with China. The investigation will cover corrosion-resistant steel that has been processed in third countries (such as painted steel) but whose original manufacture was carried out in one of the countries under investigation. However, certain flat-rolled steel and stainless steel products are excluded from the request.
The International Trade Administration has 20 days to decide whether to open the investigation, while the ITC will issue a preliminary decision in 45 days to determine whether the U.S. industry has been harmed by these imports. Preliminary decisions on subsidies are expected to be issued in late 2024 and those related to dumping in early 2025, with a final ruling from both agencies expected in October 2025.
Since 2019, Steel Dynamics has invested $3.7 billion in its steel divisions, including state-of-the-art mills and galvanizing and painting lines for flat-rolled steel. The company believes fair trade is critical to its sustainability. Maintaining the competitiveness of the U.S. steel industry
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