India Imposes Three-Year Tariff on Steel Imports
The Indian government has imposed a three-year safeguard tariff on select steel products to curb a surge in low-priced imports and protect domestic manufacturers. The decision follows concerns raised by the steel industry over rising imports that were impacting local production, prices, and capacity utilisation.
Details of the Safeguard Duty
Under the new measure, the safeguard duty will be levied for three years with a gradual reduction over time. The duty has been fixed at 12 percent in the first year, 11.5 percent in the second year, and 11 percent in the third year. The tariff applies mainly to certain categories of flat steel products and does not cover specialty steel such as stainless steel. Imports from some developing countries have been exempted under existing trade rules, while shipments from major exporting nations, including China, fall within the scope of the duty.
Basis for the Decision
The move was based on findings by the Directorate General of Trade Remedies, which concluded that there was a sudden and sharp increase in steel imports causing injury and posing a serious threat to India’s domestic steel industry. The government said the safeguard duty is intended to provide temporary relief and allow Indian producers time to adjust and improve competitiveness.
Industry and Market Impact
Domestic steel producers welcomed the decision, saying it would help stabilise prices and support production levels. Market reactions reflected optimism within the sector, though concerns remain among steel-consuming industries about potential cost pressures.
Global Trade Context
The decision comes amid broader global trade actions in the steel sector, with several countries adopting protective measures to address excess capacity and dumping concerns. India has said the tariff is in line with international trade norms and is a temporary corrective step.
