NATIONAL: India’s Steel Tariffs Challenge Chinese Dominance
India’s government has introduced a safeguard duty on specific steel imports to protect local manufacturers.
Starting at 12 percent in the first year, the rate drops to 11.5 percent in the second and 11 percent in the third.
This three-year plan aims to counter the flood of low-cost steel harming domestic production.
Targeted Countries
The duties apply mainly to imports from China, Vietnam, and Nepal, where cheap shipments have surged.
Some developing nations receive exemptions to maintain fair trade balances. This selective approach focuses on the biggest sources of underpriced steel entering the market.
Impact on Domestic Industry
As the world’s second-largest steel producer, India faces tough competition from these imports.
Recent data shows a sharp rise in foreign steel, causing financial strain for local firms. The move comes after warnings from industry leaders about job losses and reduced output.
DGTR’s Role
The Director General of Trade Remedies highlighted serious damage from import spikes in a recent report.
They recommended these tariffs to give breathing room for recovery. Government officials acted on this advice, seeing it as essential for long-term sector health.
Previous Actions
Earlier in April 2025, a temporary 12 percent duty covered all foreign steel for 200 days.
That measure ended in November, prompting the need for this targeted extension. It helped stabilize prices briefly but couldn’t address ongoing issues alone.
Product Scope
The tariffs cover select non-alloy and alloy flat steel products, including some special types like stainless steel.
This broadens protection beyond basic materials. Exporters must now adjust pricing to stay competitive in India’s growing market.
- Boosts local manufacturing confidence
- May raise costs for construction and auto sectors
- Encourages investment in homegrown steel tech
Future Outlook
With yearly import challenges, authorities plan closer monitoring of trade flows.
Stakeholders hope this curbs unfair practices without sparking wider disputes. Families in steel-dependent regions could see more stable jobs ahead.