Government Slaps 3-Year Tariff on Steel Imports to Shield Domestic Market

The government has moved to tighten trade measures in the steel sector by introducing a time-bound import duty aimed at addressing a surge in low-cost shipments entering the domestic market. 

Duty Structure and Coverage 

According to an order issued by the finance ministry and published in the official gazette, India will levy a safeguard duty on select steel products for a period of 3 years. The duty has been set at 12% in the 1st year, followed by 11.5% in the 2nd year and 11% in the 3rd year. 

The measure excludes imports from certain developing countries, while shipments originating from China, Vietnam and Nepal will be subject to the levy. Specialty steel products, including stainless steel, are not covered under the duty. 

Rationale and Background 

The decision follows a recommendation by the Directorate General of Trade Remedies, which found a recent and significant rise in steel imports that was causing, and threatening to cause, serious injury to domestic manufacturers.  

The federal steel ministry has consistently stated that it seeks to shield the local industry from the impact of cheap and sub-standard imports. The latest move builds on a temporary 200-day tariff of 12% that was imposed in April. 

Global Trade Context 

The safeguard duty is being implemented amid heightened global trade tensions in the steel sector.  

Tariffs imposed by Donald Trump on steel imports have intensified scrutiny of Chinese steel exports, prompting countries such as South Korea and Vietnam to introduce anti-dumping measures earlier this year. 

Read More: India Adds Record 44.5 GW Renewable Energy Capacity in 2025 Led by Solar and Wind! 

Conclusion 

By rolling out a phased safeguard duty over three years, India is seeking to balance trade protection with predictability for the steel market, as it responds to import pressures while supporting domestic production capacity. 

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