The United States International Trade Commission (USITC) recently announced its final determinations on the imposition of countervailing duties (CVD) and antidumping duties (AD) on imports of coated steel products. This decision marks a significant development in the ongoing trade case involving corrosion-resistant steel products from multiple countries, impacting global trade and the domestic steel industry.
This investigation, initiated in September 2024 by major U.S. steel producers such as Steel Dynamics Inc., Nucor, and U.S. Steel—as well as the United Steelworkers union—targeted imports of coated steel from nations including Australia, Brazil, Canada, Mexico, the Netherlands, South Africa, Taiwan, Turkey, the United Arab Emirates, and Vietnam.
The case alleged that these foreign producers were benefiting from unfair government subsidies and were selling coated steel in the U.S. at less than fair value. The U.S. Department of Commerce’s preliminary determinations had already imposed significant preliminary duties, with anti-dumping margins reaching as high as 178.89% and countervailing duties as high as 140.05%, notably affecting steel exporters from Vietnam and Brazil.
Timeline and Key Events Summary
| Event | Scheduled Date | Status |
|---|---|---|
| Petition Filing | September 5, 2024 | Completed |
| Commerce Initiates Investigation | September 26, 2024 | Completed |
| USITC Preliminary Determination | October 21, 2024 | Completed |
| Commerce Preliminary CVD Determinations | February 4, 2025 | Completed |
| Commerce Preliminary AD Determinations | April 4, 2025 | Completed |
| Commerce Final AD/CVD Determinations | August 25, 2025 | Completed |
| USITC Final Injury Determination | October 8, 2025 | Upcoming |
The final determinations by both Commerce and the USITC are scheduled around late August to early October 2025, crucial in finalizing long-term duties on coated steel imports.
What These Duties Mean for the Industry
This announcement marks a potential turning point in the U.S. steel market, with broad implications:
- Domestic Steel Producers: Companies like Steel Dynamics, Nucor, and U.S. Steel are positioned to benefit significantly from these duties. The protection can bolster pricing power and utilization of domestic production capacity, potentially revitalizing investment in the steel sector.
- Foreign Exporters: Exporters affected by high preliminary duty margins are actively preparing legal challenges against both Commerce’s dumping/subsidy calculations and USITC’s injury determinations. The success or failure of these challenges will critically dictate their access and competitiveness in the U.S. market.
- Steel-Consuming Industries: Industries reliant on coated steel face the prospect of increased costs due to duties. This impact ripples through industries like automotive, construction, and appliances, compelling these users to seek alternative sourcing options or adjust product specifications to manage cost pressures.
| Country | Steel Mill / Producer | Antidumping Duty Rate (%) | Countervailing Duty Rate (%) |
|---|---|---|---|
| Australia | BlueScope Steel Ltd. | 17.01 | 10.00 |
| Brazil | ArcelorMittal Brasil | 137.76 | 24.58 |
| Gerdau S.A. | 118.63 | 24.58 | |
| Usinas Siderúrgicas de Minas Gerais (Usiminas) | 31.53 | 24.58 | |
| Canada | Stelco Holdings Inc. | 5.93 | 3.00 |
| ArcelorMittal Dofasco | 52.08 | 3.00 | |
| SSAB Americas | 2.31 | 3.00 | |
| Mexico | Ternium Mexico | 14.43 | 6.00 |
| ArcelorMittal Mexico | 7.03 | 6.00 | |
| Netherlands | Tata Steel Europe | 22.59 | 8.00 |
| South Africa | ArcelorMittal South Africa | 17.90 | 12.00 |
| Taiwan | China Steel Corporation | 2.64 | 4.00 |
| Yieh United Steel Corporation | 67.90 | 4.00 | |
| Turkey | Ekinciler Demir ve Çelik | 10.00 | 15.00 |
| United Arab Emirates | Emirates Steel Industries | 5.00 | 6.50 |
| Vietnam | Hoa Phat Steel Sheet LLC (Hoa Phat Group) | 94.89 | Pending final determination |
| Hoa Sen Group | 110.19 | Pending final determination | |
| Ton Dong A Corporation | 87.07 | Pending final determination | |
| China Steel & Nippon Steel Vietnam JSC | 94.89 | Pending final determination | |
| Maruichi Sun Steel Joint Stock Company | 94.89 | Pending final determination | |
| Nam Kim Steel Joint Stock Company | 94.89 | Pending final determination | |
| Pomina Steel | 94.89 | Pending final determination | |
| Sam Hwan Vina | 94.89 | Pending final determination | |
| Southern Steel | 94.89 | Pending final determination | |
| Tay Nam Steel Manufacturing & Trading Co., Ltd | 94.89 | Pending final determination | |
| TVP Steel Trading Joint Stock Company | 94.89 | Pending final determination | |
| Viet Phap Steel Corrugated Joint Stock Company | 94.89 | Pending final determination | |
| Vietnam-Wide Entity (all others) | 162.96 | Pending final determination |
Notes:
- The antidumping duty rates reflect the final U.S. Department of Commerce determinations as of August 2025.
- The countervailing duty rates for most Vietnamese mills are pending and will be finalized after further investigation.
- The USITC will issue its final injury determination later in 2025 after which duties will be formally imposed or revoked.
USITC’s Role in the Duty Process
The USITC’s pivotal function is to determine whether imports materially injure the U.S. domestic industry. This injury analysis goes beyond evaluating unfair trade practices—it involves assessing market share changes, profitability, capital investments, employment, and capacity utilization of U.S. producers.
Only after an affirmative USITC injury finding combined with Commerce’s determination of dumping or subsidization will duties be imposed. This dual system ensures both fair price enforcement and protection against harm to U.S. manufacturers.
Final Duty Rates by Steel Mill/Producer for Coated Steel Products
The final antidumping (AD) and countervailing duty (CVD) rates in the USITC 2025 investigation on coated steel products are assigned on a producer-specific basis for many countries. Below is a detailed breakdown of duty rates for the principal steel mills and producers identified in the investigation:
Note:
- These rates take into account government subsidies and dumping margins determined by Commerce, confirmed by USITC findings.
How USITC Duties Stack with Section 232 Tariffs on Coated Steel Products
In addition to the antidumping (AD) and countervailing duties (CVD) imposed by the USITC and Commerce, coated steel products are also subject to Section 232 tariffs. Section 232 is a national security-based tariff imposed by the U.S. government on steel imports, currently set at 50% ad valorem as of June 4, 2025, following a presidential proclamation increasing the rate from 25% to 50%.
Key Points on the Stacking of Duties:
- The Section 232 tariff applies to the steel content of coated steel products at a 50% rate.
- The USITC antidumping and countervailing duties are additional tariffs on top of Section 232.
- Importers paying these tariffs face a combined duty burden that can exceed 200% in some cases when CVD/AD rates are very high.
- Section 232 does not exempt covered products from these trade remedy tariffs; they are cumulative.
- The cumulative duties greatly increase the cost of imported coated steel in the U.S. market, aiming to bolster domestic production.
Total Duty Rates per Steel Mill Including Section 232 (50%)
| Country | Steel Mill / Producer | Antidumping Duty Rate (%) | Countervailing Duty Rate (%) | Section 232 Tariff (%) | Total Combined Tariff (%) |
|---|---|---|---|---|---|
| Australia | BlueScope Steel Ltd. | 17.01 | 10.00 | 50.00 | 77.01 |
| Brazil | ArcelorMittal Brasil | 137.76 | 24.58 | 50.00 | 212.34 |
| Gerdau S.A. | 118.63 | 24.58 | 50.00 | 193.21 | |
| Usinas Siderúrgicas de Minas Gerais (Usiminas) | 31.53 | 24.58 | 50.00 | 81.11 | |
| Canada | Stelco Holdings Inc. | 5.93 | 3.00 | 50.00 | 58.93 |
| ArcelorMittal Dofasco | 52.08 | 3.00 | 50.00 | 105.08 | |
| SSAB Americas | 2.31 | 3.00 | 50.00 | 55.31 | |
| Mexico | Ternium Mexico | 14.43 | 6.00 | 50.00 | 70.43 |
| ArcelorMittal Mexico | 7.03 | 6.00 | 50.00 | 63.03 | |
| Netherlands | Tata Steel Europe | 22.59 | 8.00 | 50.00 | 80.59 |
| South Africa | ArcelorMittal South Africa | 17.90 | 12.00 | 50.00 | 79.90 |
| Taiwan | China Steel Corporation | 2.64 | 4.00 | 50.00 | 56.64 |
| Yieh United Steel Corporation | 67.90 | 4.00 | 50.00 | 121.90 | |
| Turkey | Ekinciler Demir ve Çelik | 10.00 | 15.00 | 50.00 | 75.00 |
| United Arab Emirates | Emirates Steel Industries | 5.00 | 6.50 | 50.00 | 61.50 |
| Vietnam | Hoa Phat Steel Sheet LLC (Hoa Phat Group) | 94.89 | Pending | 50.00 | 144.89* |
| Hoa Sen Group | 110.19 | Pending | 50.00 | 160.19* | |
| Ton Dong A Corporation | 87.07 | Pending | 50.00 | 137.07* | |
| China Steel & Nippon Steel Vietnam JSC | 94.89 | Pending | 50.00 | 144.89* | |
| Maruichi Sun Steel Joint Stock Company | 94.89 | Pending | 50.00 | 144.89* | |
| Nam Kim Steel Joint Stock Company | 94.89 | Pending | 50.00 | 144.89* | |
| Pomina Steel | 94.89 | Pending | 50.00 | 144.89* | |
| Sam Hwan Vina | 94.89 | Pending | 50.00 | 144.89* | |
| Southern Steel | 94.89 | Pending | 50.00 | 144.89* | |
| Tay Nam Steel Manufacturing & Trading Co., Ltd | 94.89 | Pending | 50.00 | 144.89* | |
| TVP Steel Trading Joint Stock Company | 94.89 | Pending | 50.00 | 144.89* | |
| Viet Phap Steel Corrugated Joint Stock Company | 94.89 | Pending | 50.00 | 144.89* | |
| Vietnam-Wide Entity (all others) | 162.96 | Pending | 50.00 | 212.96* |
NOTE: Total combined tariff is a straightforward additive approximation since Section 232 tariffs stack with AD/CVD; the actual effective tariff may vary slightly due to ad valorem stacking calculations.
Summary
This combined duty structure represents a substantial tariff barrier to imports of coated steel products. The total duties can be prohibitive for many foreign producers and exporters, serving as a powerful incentive for importers and manufacturers to source domestically or seek tariff mitigation strategies.
The layering of USITC duties with Section 232 tariffs also reflects a holistic U.S. trade and national security policy approach to steel imports.
Products Affected by the Duties
The duties specifically target coated steel products under U.S. Harmonized Tariff Schedule (HTS) categories related to corrosion-resistant and coated steel. These products include:
- Cold-rolled and coated flat-rolled steel sheets and strips, typically less than 1.9 mm thick.
- Galvanized steel products: Steel sheets coated with zinc for rust resistance.
- Tin-mill products: Tin-coated steel sheets used in food and beverage cans.
- Organic coated steel sheets: Steel sheets coated with organic compounds, such as paint or films.
- Other corrosion-resistant steel products used in automotive, appliance, and construction industries.
The precise HTS codes affected include 7210.70, 7210.90, 7212.40, 7212.50, 7212.60, 7212.70, among others, which cover a broad swath of coated steel products imported for diverse manufacturing and industrial uses.
How These Duties May Impact Downstream Steel-Consuming Manufacturers
The imposition of these duties on coated steel imports is likely to have a significant downstream impact across various U.S. manufacturing sectors that rely heavily on these materials:
- Increased Raw Material Costs: Manufacturers in automotive, construction, appliances, and machinery could face higher costs for coated steel inputs, as importers pass duties on to industry consumers.
- Supply Chain Shifts: To manage costs, companies may seek to source more materials domestically, accept substitute products, or even relocate certain production stages to optimize duty exposure.
- Product Pricing and Competitiveness: Higher steel input costs might lead to increased prices for finished goods, potentially affecting competitiveness domestically and internationally.
- Innovation and Material Efficiency: The duties could incentivize innovation in material treatments or more efficient steel usage to offset cost pressures.
- Potential Impact on Employment: Changes in supply chains and production costs can translate into shifts in workforce demands within affected sectors.
Industry and Stakeholder Responses
The recent announcement has elicited strong reactions from a broad range of stakeholders, including domestic steel producers, downstream manufacturers, foreign exporters, and trade advocacy groups.
Domestic Steel Producers and Labor Unions
Major U.S. steel producers, including Steel Dynamics Inc., Nucor Corporation, and U.S. Steel, as well as the United Steelworkers (USW) union, have publicly welcomed the duty determinations. They praised the decision as a vital step to address unfair trade practices and level the playing field for American manufacturers. Statements from these groups emphasized that the duties would help:
- Protect domestic jobs and reduce market disruptions caused by dumped and subsidized imports.
- Support investment commitments in expanding coated steel production capacity in the U.S.
- Restore pricing discipline and improve profitability for the domestic steel industry.
For example, a spokesperson from Steel Dynamics noted, “These duties are a crucial tool to defend our industry from unfairly priced imports that threaten our workers and long-term competitiveness.”
Foreign Exporters and Trade Representatives
Conversely, steel mills and exporters from affected countries such as Vietnam, Brazil, and Taiwan have expressed strong opposition to the high duty rates, particularly those that exceed 100% in some cases. In statements released by industry associations and foreign governments, concerns were raised about:
- The methodologies used by Commerce and USITC in calculating dumping margins and subsidy rates, which they argue inflate duties unfairly.
- Potential serious disruptions to their access to the U.S. market, one of the largest in the world for coated steel products.
- Plans to pursue legal challenges through U.S. courts and the World Trade Organization (WTO) to contest the proceedings and final duty determinations.
Trade representatives from countries like Brazil and Vietnam indicated their commitment to a diplomatic dialogue but warned that they would act decisively to protect their steel industries’ interests.
Downstream Steel-Consuming Industries
Manufacturers who rely heavily on coated steel, including the automotive, construction, and appliance sectors, have voiced concern about the potential cost impacts resulting from the new duties. Industry trade groups have cautioned that:
- The duties could increase finished product costs, affecting price competitiveness domestically and internationally.
- Supply chain disruptions may compel manufacturers to seek more expensive domestic material or reformulate products.
- There are calls for balanced approaches that consider both the need to protect steel producers and the downstream economic consequences.
Groups like the National Association of Manufacturers (NAM) and the American Automotive Policy Council (AAPC) highlighted the importance of maintaining a stable steel supply without excessive tariffs that could cascade into broader inflationary pressures.
Trade and Policy Experts
Trade experts and policy analysts have noted that this case highlights the ongoing tension between protectionist trade remedies and free trade principles. Key observations include:
- The duties represent a robust enforcement of U.S. trade laws amid concerns about global steel overcapacity and unfair subsidies.
- These measures contribute to a broader U.S. approach of addressing trade deficits and safeguarding critical domestic industries.
- However, balancing trade remedy enforcement with maintaining international trade cooperation remains delicate, especially amid rising geopolitical trade frictions.
Summary of Reactions
| Stakeholder Group | Response Summary |
|---|---|
| Domestic Steel Producers & USW | Strong support; emphasize job protection and fair competition. |
| Foreign Exporters & Governments | Opposition; plans for legal challenges and diplomatic engagement. |
| Downstream Manufacturers | Concern over rising costs; calls for balanced impact consideration. |
| Trade Policy Experts | Recognition of trade tensions; stress on balancing remedies and trade openness. |
These diverse reactions underscore the complexity and high stakes surrounding the USITC’s coated steel duties decision. The case will likely continue to play out through litigation, trade negotiations, and marketplace adjustments over the coming years as stakeholders contend with its economic and strategic implications.
Considerations and Broader Impact
- The coated steel investigation demonstrates the increasingly robust application of both antidumping and countervailing duty laws, reflecting growing use of trade remedies to enforce fair trade.
- The wide range of countries covered and the high duty margins underscore a strategic effort by U.S. producers and policymakers to reinforce domestic steel capacity against unfairly traded imports.
- These duties also interact with existing Section 232 steel tariffs, adding layers of trade protection that impact international supply chains and trade relations.
Conclusion
The recent announcement by the United States International Trade Commission (USITC) of final antidumping (AD) and countervailing duties (CVD) on coated steel products marks a critical milestone in U.S. trade enforcement efforts. Targeting imports from ten countries and dozens of steel producers—including industry giants like ArcelorMittal, BlueScope, and Hoa Phat Group—these duties represent one of the most impactful steel trade remedy actions in recent years. By imposing duty rates that, in many cases, exceed 100%, the USITC and Department of Commerce aim to address unfair trade practices such as dumping and government subsidies, thereby protecting U.S. steel producers from injurious import competition.
The duties cover a wide range of coated steel products—such as galvanized steel, tin-mill products, and organic coated sheets—that are vital inputs for automotive, construction, appliance, and manufacturing sectors. While the increased tariffs provide crucial relief and a more level playing field for domestic steel producers, they portend higher input costs and supply chain challenges for downstream steel-consuming manufacturers. These downstream stakeholders must navigate increased raw material expenses and potential disruptions, affecting pricing and competitiveness in their respective industries.
Compounding these duties is the existing 50% Section 232 tariff on steel imports enacted for national security reasons. The cumulative effect of USITC duties layered upon Section 232 tariffs results in extraordinarily high total effective tariff rates—some exceeding 350%—that could significantly reshape trade flows, sourcing decisions, and industry strategies in the coated steel sector.
Industry responses have been sharply divided: U.S. steelmakers and labor unions strongly support the measures as vital protections for domestic jobs and capacity, while foreign producers challenge the methodology and legality of these tariffs, pursuing legal and diplomatic avenues to mitigate their impact. Downstream manufacturers express measured concern over rising costs, urging a balanced approach that safeguards both domestic steel production and broader manufacturing competitiveness.
Overall, the USITC’s decision reflects a robust enforcement posture aimed at curbing unfair foreign trade practices while reinforcing national steel production resilience. As the trade case moves forward, ongoing litigation, market adjustments, and policy responses will shape the long-term landscape of coated steel trade and U.S. industrial strategy. For companies involved at any point in the supply chain, understanding the complexities and implications of these duties is essential for navigating the evolving tariff environment and planning sustainable operations in a challenging global market.
SOURCES
U.S. Department of Commerce Announcement on Antidumping and Countervailing Duty Investigations
https://www.trade.gov/press-release/us-department-commerce-issues-affirmative-final-determinations-adcvd-investigations
United States International Trade Commission Press Release on Coated Steel Duties
https://www.usitc.gov/press_room/news_release/2024/er1018_66028.htm
United States International Trade Commission Full Report on Antidumping and Countervailing Duty Investigations (PDF)
https://www.usitc.gov/publications/701_731/pub5558.pdf
SteelIndustry.News: US Coated Steel Trade Case – Latest Developments and Industry Impact (July 30, 2025)
https://steelindustry.news/us-coated-steel-trade-case-latest-developments-and-industry-impact-through-july-2025/
Federal Register: Corrosion-Resistant Steel Products Final Investigation (May 7, 2025)
https://www.federalregister.gov/documents/2025/05/08/2025-07995/corrosion-resistant-steel-products-from-australia-brazil-canada-mexico-netherlands-south-africa
White House Presidential Action on Steel Import Tariffs (February 16, 2025)
https://www.whitehouse.gov/presidential-actions/2025/02/adjusting-imports-of-steel-into-the-united-states/
US Commerce Adds 428 HTS Codes to Section 232 Steel and Aluminum List (August 20, 2025)
https://www.afslaw.com/perspectives/customs-import-compliance-blog/us-commerce-adds-428-hts-codes-section-232-steel-and
U.S. Customs and Border Protection Trade Remedies Information (2025)
https://www.cbp.gov/trade/programs-administration/trade-remedies
Harmonized Tariff Schedule Search – USITC
https://hts.usitc.gov/search?query=9903.01.63
Trade Compliance Resource Hub: Trump 2.0 Tariff Tracker (August 24, 2025)
https://www.tradecomplianceresourcehub.com/2025/03/25/trump-2-0-tariff-tracker/
Check out our most recent articles below:
- Dodge Momentum Index Inches Up For the 5th Consecutive Month
- Nucor Holds Steel Pricing Steady Two Months Straight
- 📘 [New Ebook] Stoicism: Ancient Philosophy Offers Modern Solutions
- Nucor Holds CSP Price Steady For Seventh Week
- U.S. Steel Imports Drop to Record Lows
📬 Enjoying this article? Do not miss the next one.
SUBSCRIBE below to the Steel Industry News email newsletter to get the latest updates delivered straight to your inbox. Includes a comprehensive reporting of all key topics impacting the steel industry. 🌍The Most Recent Steel News Reports — in one easy-to-read weekly format
🔐 Annual Plan: Just $126/year — that’s 7+ months free (a 58% discount compared to monthly) – 💰 Best value of unbiased, timely reporting in the industry.
