India, the world’s second-largest producer of crude steel, imposed a 12% temporary tariff on certain steel imports on Monday to address the surge in cheap steel shipments, particularly from China.
The influx of Chinese steel in recent years has forced some Indian mills to reduce operations and consider job cuts, prompting India, along with other nations, to take action to protect its local industry.
The Ministry of Finance issued an official order stating that the duty would be in effect for 200 days, starting Monday, unless revoked, replaced, or amended earlier.
This action marks New Delhi’s first major trade policy change since U.S. President Donald Trump imposed broad tariffs on various countries in April, initiating a trade conflict with China.
The issue of cheap steel imports into India dates back further, with the investigation leading to this decision starting in December.
India’s Steel Minister, H. D. Kumaraswamy, explained that the safeguard duty is designed to protect domestic steel producers from the harmful impact of increased imports and to ensure fair market competition.
“This measure will provide vital relief to local producers, especially small and medium enterprises, which have faced significant pressure from rising imports,” Kumaraswamy stated.
The tariffs are primarily aimed at China, the second-largest exporter of steel to India after South Korea in 2024/25.
A senior executive at a prominent Indian steel mill commented, “The decision aligns with expectations, and we will now observe how this impacts the industry, margins, and the reduction of cheap imports.”
India remained a net importer of finished steel for the second consecutive year in 2024/25, with imports reaching a nine-year high of 9.5 million metric tons, according to preliminary government figures.
The Steel Manufacturers’ Association of India, which includes companies like JSW Steel, Tata Steel, Steel Authority of India (SAIL), and ArcelorMittal Nippon Steel India, has raised concerns about imports and called for curbs.
