India considers 12% tariff on steel to curb China imports
What's the story
India is set to impose a temporary tariff of 12% on steel imports, as per a Reuters report.
Known locally as safeguard duty, the move aims to curb the rise in cheap steel imports from China and elsewhere.
The government would enact the tax as soon as possible, the report said, without specifying a timeline.
Steel dynamics
India: A major player in global steel production and import
Despite being the world's second-biggest crude steel producer, India was a net importer of finished steel for the second consecutive year in the 2024/25 fiscal year.
Provisional government data shows that shipments hit a nine-year high of 9.5 million metric tons in the 2024/25 fiscal year.
Tariff recommendation
DGTR recommends temporary tariff on steel products
In a bid to combat cheap imports, the Directorate General of Trade Remedies (DGTR) under the federal trade ministry proposed a 12% tariff on select steel products for 200 days.
The recommendation came after an investigation was launched in December last year to ascertain if unrestricted imports had adversely affected India's domestic steel industry.
Import surge
Record high steel imports from China, South Korea and Japan
India's finished steel imports from China, South Korea, and Japan hit a record high in the first 10 months of the financial year that ended in March.
Imports from these three countries accounted for 78% of India's overall finished steel imports.
The influx of cheap steel has forced India's smaller mills to scale down operations and consider job cuts.
Industry response
Indian steelmakers voice concerns over imports
The leading steelmakers' association in India, which counts JSW Steel and Tata Steel among its members, alongside the Steel Authority of India and ArcelorMittal Nippon Steel India, has raised concerns over imports and called for curbs.
These industry leaders have demanded curbs on these imports to protect their businesses from the onslaught of cheaper foreign steel.