India, the world’s second-largest producer of crude steel, has introduced a 12% temporary tariff on certain steel imports, locally referred to as a safeguard duty, to contain a surge in cheap shipments, mainly from China. The influx of Chinese steel in recent years has forced some Indian mills to scale down operations and consider job cuts, prompting India to join a growing list of countries seeking to protect their local industries.
According to an official order from the Ministry of Finance, the duty will be in effect for 200 days starting Monday, unless revoked, superseded, or amended earlier. This marks New Delhi’s first major trade policy shift since US President Donald Trump’s imposition of widespread tariffs that triggered a broader trade conflict with China.
Although tensions over cheap steel imports into India predate the global trade war, the investigation leading to the new measure began in December. Steel Minister H. D. Kumaraswamy stated that the move is intended to shield domestic steel manufacturers from the harmful effects of rising imports and to ensure fair competition in the market. He emphasised that the tariff would offer critical relief to domestic producers, particularly small and medium-sized enterprises, who have been under significant pressure due to increasing imports.
The tariff predominantly targets China, which was India’s second-largest source of steel imports after South Korea in the last financial year. A senior executive at a leading Indian steel mill noted that the decision was anticipated and added that the industry would now observe how the measure supports domestic margins and curbs cheap imports. The executive remarked that global markets are affected by Chinese exports, whether directly or indirectly.
Provisional government data indicates that India was a net importer of finished steel for the second consecutive year in 2024–25, with imports reaching a nine-year high of 9.5 million tons. Delhi’s main steelmakers’ association, which includes members such as JSW Steel, Tata Steel, Steel Authority of India, and ArcelorMittal Nippon Steel India, has consistently voiced concerns over rising imports and advocated for restrictive measures.
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