U.S. Department of Commerce Begins Inquiry on China’s Steel Products

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The U.S. Department of Commerce has initiated an investigation regarding certain steel products from China. The inquiry began on July 6, 2026, following a request by Nucor Corporation and Steel Dynamics, Inc.

The investigation focuses on “corrosion-resistant steel products,” often called CORE. The concern is that these steel products are completed in Thailand using parts made in China and then exported to the United States.

This inquiry aims to determine if these actions are attempts to avoid the antidumping duty (AD) and countervailing duty (CVD) orders that apply to steel products coming from China.

Background of the Inquiry

On February 26, 2026, the requesters filed a request, alleging circumvention. They claim that CORE completed with Chinese parts in Thailand should be included in the existing duty orders.

The products involved fall under previous orders dating back to July 2016. These orders affect several countries but focus particularly on China.

Details on the Circumventing Merchandise

This inquiry reviews CORE made in Thailand using Chinese-origin components. These products are later exported from Thailand to the United States.

Regulatory Steps and Criteria

Commerce follows specific rules for starting such an investigation. According to section 781(b) of the Tariff Act of 1930, Commerce checks multiple criteria to see if circumvention is happening.

To decide, they look at aspects such as:

  • The process of production in another country.
  • Value added through minor changes.
  • If the process outside China is minor or insignificant.

They also consider trade patterns and any increase in imports after starting the original investigation.

Commerce’s Next Steps

Commerce will collect data from U.S. Customs. They plan to choose respondents based on this data. Interested parties will be able to access this data through an online system.

Commerce will send questionnaires to producers in Thailand for more information on their processes. Non-compliance might lead to adverse outcomes for those businesses.

Impact on Product Suspensions

While this inquiry is ongoing, Commerce has instructed border protection to continue the suspension of liquidation on affected products. If preliminary findings suggest circumvention, the suspension rules might change.

Conclusion

The U.S. Department of Commerce aims to complete the preliminary determination within 150 days from the start date, with a final decision by 300 days. The outcome will affect how products meet existing U.S. trade laws.

This announcement was officially made by Christopher Abbott on behalf of the U.S. Department of Commerce.


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