NEWS&CASES
Overview of Pakistan’s Tariff Measures on Chinese Steel
In early May 2026, the trade circle has witnessed the full fermentation of multiple anti-dumping tariff measures imposed by Pakistan on Chinese steel products. Issued by the National Tariff Commission (NTC) of Pakistan, these measures, which mainly cover billets, galvanized coils, cold-rolled sheets and color-coated sheets, are aimed at protecting local steel enterprises, reducing dependence on low-cost Chinese steel and narrowing the trade deficit. Most of the tariff measures took effect retroactively on June 22, 2025, with a validity period of up to five years, exerting a significant impact on Sino-Pakistani steel trade.
Tariff Details by Steel Product Category
1. Continuous Casting Billets (CC Billets): 24.04% Anti-Dumping Duty for 5 Years
As a semi-finished product in the steel industry, continuous casting billets (CC Billets) have become one of the key targets of Pakistan’s tariff measures. The NTC decided to impose an anti-dumping duty of 24.04% ad valorem on Chinese continuous casting billets, which include iron, non-alloy and alloy steel semi-finished products used for rolling into steel bars, wire rods, profiles and other products. The tariff covers multiple tariff codes such as 7207.1110, 7207.1190 and 7224.1000, and officially took effect on June 22, 2025, with a validity period of five years until June 21, 2030. This is a renewal of the anti-dumping duty first imposed in June 2022 for a three-year period, and the NTC decided to extend it for another five years after a sunset review in June 2025. It is worth noting that there is a sole exemption for this tariff: raw materials used for purely export-oriented products or foreign aid projects, which are included in Pakistan’s customs duty-free program, can be exempted from this anti-dumping duty.
2. Galvanized Coils (GI/HDG): Tariff Rates Ranging from 6.09% to 40.47%
Galvanized coils (GI/HDG), including hot-dip galvanized coils/sheets and zinc-aluminum coated coils (GL), have been imposed with the most differentiated tariff rates, ranging from 6.09% to 40.47% ad valorem. These products, usually with a thickness of 0.3-3.5mm, are widely used in construction, home appliances and automobile industries. Specifically, mainstream Chinese steel enterprises are subject to a tariff rate of 6.09% to 15%, while some enterprises identified as having a high dumping margin face a top tariff rate of 25% to 40.47%. The tariff is levied on an ad valorem basis, superimposed on the normal tariff and sales tax, and has been implemented since the middle of 2025, synchronously with the measures for continuous casting billets.
3. Cold-Rolled Sheets (CR): 13.17% to 19.04% with Anti-Circumvention Measures
For cold-rolled sheets (CR), Pakistan has imposed an anti-dumping duty ranging from 13.17% to 19.04%, and has also taken anti-circumvention measures to plug regulatory loopholes. The scope of the products covers unplated/uncoated cold-rolled hard coils and annealed coils with a thickness of 0.15-3.00mm. Initially, the tariff only applied to products with a width of ≤1250mm, but in a final ruling on anti-circumvention on February 20, 2026, the NTC expanded the scope to products with a width of >1250mm, as it found that some Chinese enterprises adjusted the product width to avoid the original tariff rules. The top tariff rate for major large-scale enterprises reaches 19.04%, which takes effect immediately. Similar to continuous casting billets, auto outer panels, tinplate black sheets, and materials used for export or foreign aid projects are exempted from this tariff. The tariff covers multiple tariff codes such as 7209.1510, 7209.1610 and 7209.2890.
4. Color-Coated Sheets (PPGI/PPGL): 5.36% to 10.88% Ad Valorem
Color-coated sheets (PPGI/PPGL) are also included in the tariff list, with an ad valorem tax rate ranging from 5.36% to 10.88%. The covered products are color organic coated steel coils/sheets with a thickness of >0.23mm, involving tariff codes such as 7210.7020 and 7210.7090. Generally, most enterprises are subject to a tariff rate of 5.36% to 8%, while some enterprises face a tariff rate of 10.88%.
5. Other Steel Products: Additional Tariffs
In addition to the above products, Pakistan has also imposed anti-dumping duties on other Chinese steel products: 19.15% anti-dumping duty on deformed concrete steel bars, and 10% to 25% tariffs on some profiles and welded pipes, forming a full-chain tariff blockade from semi-finished products to finished products.
Impacts on Chinese Steel Export Enterprises
These tariff measures have brought significant impacts on Chinese steel export enterprises. Firstly, the cost has increased significantly: for continuous casting billets, the cost has increased by 24% after the tariff is added (from 1000 US dollars to 1240 US dollars); for galvanized coils, enterprises subject to high tariff rates face a cost increase of 40% directly, basically losing their price advantage in the Pakistani market. Secondly, the order structure has to be adjusted: enterprises have to abandon the Pakistani market for high-tariff products such as galvanized coils and cold-rolled sheets, or turn to transshipment through third countries, which carries certain risks; for continuous casting billets, only orders used for finished export products (which can apply for duty exemption) are retained. Thirdly, the customs clearance risk has increased. Pakistan’s customs now strictly examines the origin, material report and dimensions of the goods. Parameters such as width, thickness and zinc coating weight must be strictly consistent with the customs declaration, otherwise, it will be treated as circumvention, resulting in fines and heavy taxes.
Conclusion
In summary, Pakistan’s latest tariff measures have formed a full-chain blockade on Chinese steel products from billets to finished products. With the implementation of these measures, Chinese steel export enterprises will face greater cost pressure and market challenges in the Pakistani market, and need to adjust their export strategies in a timely manner to respond to the changing trade environment.