India has introduced a temporary 12% safeguard duty on certain steel imports, a move aimed at curbing the influx of cheap steel, primarily from China, reported Reuters.
The Ministry of Finance announced that the tariff would be effective for 200 days starting from Monday, with the possibility of revocation, amendment or extension.
The safeguard measure follows an investigation that began in December, reflecting long-standing tensions over steel imports.
The tariffs are primarily directed at China, the second-largest exporter of steel to India after South Korea in the fiscal year 2024/25 (FY24/25).
Steel Minister H. D. Kumaraswamy said: “This move will provide critical relief to domestic producers, especially small and medium-scale enterprises, who have faced immense pressure from rising imports. The safeguard duty will help restore market stability and reinforce the confidence of the domestic industry.”
He emphasised the need to protect local manufacturers from the surge in imports and to ensure fair competition.
A senior executive from a leading Indian steel mill said: “The decision is along expected lines and we will now wait and see how this measure supports industry and margins and restricts cheap imports into the country.”
India has been a net importer of finished steel for two consecutive years, with imports hitting a nine-year high of 9.5 million tonnes in 2024/25, as per provisional government data.
The country’s top steelmakers including JSW Steel, Tata Steel, Steel Authority of India and ArcelorMittal Nippon Steel India have expressed concerns over the impact of imports and have advocated for protective measures.
The imposition of the tariff marks India’s first significant trade policy shift since the US announced a 10% tariff on all countries, starting on 5 April 2025.
