The government may opt for applying safeguard tariffs, anti-dumping measures or countervailing measures to guard against a flood of foreign steel if the planned US steel tariffs come into force.
Wanchai Varavithaya, deputy director-general of the Foreign Trade Department, yesterday said a preliminary study found that the US steel tariffs would lower Thai steel exports to the US and possibly trigger a flood of foreign steel to Thailand for countries unable to access the US market.
A study by the Iron and Steel Institute of Thailand estimated that the country would lose 10.5 billion baht from 383,496 tonnes of steel exports (notably for steel pipe, cold-rolled steel and galvanised steel sheet) as a direct consequence of the US tariffs.
As an indirect impact, the institute said Thailand is likely to encounter a flood of foreign steel, as the US tariffs are expected to redirect 27 million tonnes of steel to Asean markets.
Steel-making countries expected to rev up exports to Thailand include South Korea, Turkey, Japan, Taiwan, China, Russia, Vietnam and India, which account for a combined 40% of total steel exports to the US market.
Products likely to be dumped on the Thai market include steel rod, tin- and chromium-coated steel sheet, galvanised steel sheet and tin plate, which have no trade barriers here.
"The ministry is closely monitoring the US steel tariffs and preparing preventive measures to offset the impact," Mr Wanchai said. "The guidelines we may apply to protect our domestic products and prevent a flood of foreign steel are safeguard measures and anti-dumping or countervailing tariffs."
He said the process requires private firms that have been affected by foreign steel dumping to file complaints with the Commerce Ministry, which will investigate by taking into account losses, market share, import amount and impact on domestic employment.
The investigation process takes about one year before any punitive measures are determined.
The Commerce Ministry is scheduled to hold discussions with the private sector tomorrow on how to evaluate and cope with US steel tariffs.
US President Donald Trump last Thursday announced tariffs of 25% on steel imports and 10% on aluminium imports, saying they were needed to protect US national security.
