Temporary steel tariff imposed: India to Impose Temporary Tariff on Steel Imports
India is planning to impose a temporary tariff, known as a safeguard duty, of 12% on steel imports. According to a government source with direct knowledge of the matter, the government aims to curb a surge in cheap imports from China and other countries.
Background
The decision to impose the tariff follows a recommendation by the Directorate General of Trade Remedies (DGTR) last month. The DGTR suggested a 12% tariff on some steel products for 200 days as part of efforts to stem cheap imports. The recommendation was made after an investigation that began in December last year into whether unbridled imports have harmed India’s domestic steel industry.
Impact of Cheap Imports
India, the world’s second-biggest crude steel producer, has seen a significant increase in steel imports. In the 2024/25 fiscal year, India was a net importer of finished steel for the second consecutive year, with shipments reaching a nine-year high of 9.5 million metric tons. The influx of cheap steel has forced India’s smaller mills to scale down operations and consider job cuts.
Countries Affected
The main countries affected by the potential tariff are China, South Korea, and Japan, which accounted for 78% of India’s overall finished steel imports. South Korea and Japan have already hit a record high in the first 10 months of the financial year that ended in March.
Still on Temporary steel tariff imposed
Industry Response
India’s leading steelmakers’ body, which includes JSW Steel and Tata Steel among its members, has raised concerns over imports and called for curbs. The body, which also includes the Steel Authority of India and ArcelorMittal Nippon Steel India, has been advocating for measures to protect the domestic steel industry.
Government Decision
The government is expected to enact the tax as soon as possible, with the source stating that there is clarity on the 12% duty and a decision is expected at the earliest. The Ministry of Finance, which takes the final decision, has not yet commented on the matter.
International Context
India’s decision to impose a temporary tariff on steel imports is part of a growing trend of countries taking action to stem imports. The move is likely to have implications for the global steel market and India’s trade relationships with other countries.
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