India levies 12% tariff on steel to curb cheap China imports

India on Monday joined a worldwide wave of steel protectionism, levying a 12% safeguard duty on the commodity, days after US President Donald Trump slapped duties on all US imports.

The government levied the safeguard duty on the import of certain non-alloy and alloy steel flat products.

“The measure is a timely and necessary step to protect domestic steel manufacturers from the adverse impact of import surges and to ensure fair competition in the market,” Union minister for steel and heavy industries H. D. Kumaraswamy said.

Multiple nations are shoring up their defenses to fight a flood of the metal, particularly from mega producer China.

The commerce ministry had proposed the temporary “safeguard” duties of 12% on a wide range of steel products a month ago.

Safeguard measures are used “in times of increased, unfavorable and unforeseen imports that cause or threaten to cause permanent damage to the domestic industry,” the ministry’s statement had then said.

“The move will provide critical relief to domestic producers, who have faced immense pressure from rising imports. It will help restore market stability and reinforce the confidence of the domestic industry,” Kumaraswamy said on Monday.

A recent Director General of Trade Remedies (DGTR) probe concluded that there has been a recent, sudden, sharp, and significant surge in imports of flat steel products into India.

The DGTR probe said any delay in implementing provisional safeguard measures would lead to irreparable damage, necessitating immediate action.

The duty will not be applicable to imports of the subject goods originating from countries notified as developing countries under the Customs Tariff Act, excluding China and Vietnam.

The levy will remain in effect for a period of 200 days from 21 April, unless it is revoked, superseded, or amended earlier.

India became a net steel importer of steel last year, with imports reaching 9.22 million tons (mt), exceeding exports of 7.60 mt, data from market analytics firm BigMint showed.

South Korea topped the list of steel exporters to India with 2.86 mt (2.50 mt in calendar year 2024), up 14% year-on-year.

China came a close second with 2.76 mt, though the volumes were up a hefty 64% from 2023 levels of 1.69 mt, bringing its share of 30% in total imports almost on par with Korea’s 31%.