The Department of Commerce is expected to launch a formal investigation Monday into whether Chinese steel companies are shipping steel through Vietnam to avoid U.S. import tariffs, according to a person familiar with the matter.
The decision to investigate follows a complaint in September from U.S. steelmakers, and is an escalation of U.S. efforts to stop a glut of China-made metal from flooding U.S. markets. The inquiry could result in new tariffs on steel imported from China via Vietnam, under rules designed to prevent such a tariff-evading practice, known as circumvention.
U.S. steel producers alleged in their complaint that Chinese steelmakers have shipped metal to Vietnam, made enough changes to it that they could then classify it as Vietnamese and then shipped it to the U.S. under the lower tariffs charged on Vietnamese steel.
