Temporary 12% Tariff on Steel Imports: India's Bid to Safeguard Domestic Producers

New Delhi (The Uttam Hindu): India is set to impose a temporary 12% tariff on steel imports to stem a surge in cheap imports from China and other countries. According to a government source, the tariff will be enacted as soon as possible. This move aims to protect India's domestic steel industry, which has been impacted by a significant increase in imports.

Steel Imports on the Rise

India, the world's second-largest crude steel producer, was a net importer of finished steel for the second consecutive year in the 2024/25 fiscal year. Finished steel imports reached a nine-year high of 9.5 million metric tons. Imports from China, South Korea and Japan accounted for 78% of India's overall finished steel imports, with these countries shipping record amounts of steel to India in the first 10 months of the last financial year.

Impact on Indian Steel Industry

The influx of cheap steel has forced smaller Indian mills to scale down operations and consider job cuts. India's leading steelmakers, including JSW Steel and Tata Steel, have raised concerns over imports and called for curbs.

Government Recommendation

The Directorate General of Trade Remedies (DGTR) recommended a 12% tariff on some steel products for 200 days following an investigation into whether unbridled imports have harmed India's domestic steel industry. The government is expected to finalize the decision soon.

Industry Response

The steel industry has welcomed the move, with industry bodies and major steelmakers supporting the imposition of tariffs to protect domestic production. The government aims to support the domestic steel industry and reduce dependence on imports.