TAIPEI (Taiwan News) — Taiwan's finance ministry decided to continue a tariff on certain Chinese and South Korean steel imports on Tuesday after a review.
The ministry said all Chinese and South Korean exporters of cold-formed steel to Taiwan will continue to face “anti-dumping duties” of around 38% for five years, per UDN Money. The ministry's Customs Administration said it has imposed anti-dumping duties on the product type from the two countries since 2013.
The administration said the finance and economics ministries determined removing the tariff would harm Taiwan's industries and increase dumping. It also said the review found continuing the tax would not significantly impact Taiwan’s economy.
The finance ministry said the review came after the two companies that initially requested the tariffs, Yusco Steel and Tang Eng Iron Works, asked they continue.
The ministry’s review noted that cold-formed steel is a key component for many Taiwanese industrial products. It said it is used in home appliances, construction, food production, petrochemicals, machinery, transportation, and other industries.
Around 90% of cold-formed steel in the Taiwan market is locally made. The ministry’s review said that sluggish cold-formed steel demand and excess production capacity in China and South Korea mean the countries export it cheaply.
The review said Taiwan's high demand and low freight cost mean it is a main dumping target for the two countries' exporters. It said the cheaper imported steel would damage Taiwan's steel industries, worsening problems caused by price sensitivity and domestic oversupply.
