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28-11-2025
Bureau Report
NEW DELHI: India is considering extending an import tariff, locally known as a safeguard duty, on some steel products to counter cheaper imports primarily from China, according to a source with direct knowledge of the matter.
India, the world’s second-biggest crude steel producer, had in August recommended a three-year import tariff of 11%-12% on some steel products as part of the final findings of the Directorate General of Trade Remedies that falls under the federal trade ministry.
“It (tariff) is under consideration,” the source told media, declining to be identified due to the sensitive nature of the matter.
India’s Ministry of Finance did not immediately respond to a media email seeking comments.
The Indian government had in April imposed a 12% temporary tariff for 200 days that lapsed earlier this month.
India’s finished steel imports during the first seven months of the financial year were down 34.1% year-on-year.
South Korea was the biggest exporter of finished steel to India during the period, shipping in 1.4 million metric tons of finished steel, followed by China, Japan and Russia. Chinese steel exports made India “vulnerable”, the source said, primarily due to cheaper prices.
China’s steel output will slip below 1 billion tons this year for the first time in six years, on track to meet the government’s pledge to reduce production, the state-backed steel association said late last month.
Beijing in late October unveiled a proposal for a more stringent steel capacity swap plan to reduce existing capacity, a move that is set to rebalance supply and demand in the sector contending with overcapacity.
In August, India has recommended a three-year import tariff of 11%-12% on some steel products to curb shipments from top producer China.
The levy, if imposed, will start at 12%. It will be eased to 11.5% in the second year and to 11% in the third year, the Directorate General of Trade Remedies (DGTR) said in a notification dated August 16.
“The Authority concludes that there is a recent, sudden, sharp and significant increase in imports,” the notification said, adding that this could cause serious injury to the domestic steel sector.
The DGTR also said that due to 50% tariffs on steel imports into the US, coupled with similar measures by other countries, a bulk of steel volumes are lying with manufacturers across the world.
“Therefore, the safeguard duty must address, not only the serious injury suffered by the domestic industry…but also the threat of serious injury that is likely to arise in the future.” The final recommendation follows preliminary findings, after which the Indian government in April imposed a 12% temporary tariff for 200 days
Earlier on Monday, Japanese steel lobby groups said they have requested the early introduction of measures to prevent the evasion of anti-dumping tariffs aimed at protecting their domestic sector from unfair imports.
US President Donald Trump’s import tariffs on steel have fueled a wave of trade frictions against Chinese steel, with countries including South Korea and Vietnam imposing anti-dumping levy.
China’s giant steel industry is facing mounting pressure on exports this year as it faces another wave of trade frictions from US President Donald Trump’s new tariffs.
Trump announced plans earlier this month to impose 25% tariffs on all steel and aluminium imports into the United States, effective from March 12.
