India has plans to impose a new temporary tariff of 12% on steel imports, locally called the safeguard duties, intending to control the increase in cheap imports from China and elsewhere.
One of the sources told Reuters on Monday that the government is set to enact the tax as soon as possible.
Last month, as a part of their efforts to mobilise cheap imports, the Directorate General of Trade Remedies (DGTR) under the federal trade ministry, proposed the 12% tariffs on selected steel products for 200 days. However, the recommendation was followed by an investigation from last December to monitor if the unconstrained imports of steel have harmed the India’s domestic steel industry.
“There is clarity that the duty would be 12% and a decision is expected at the earliest,” the source said, according to reports. However, the Minister of Finance did not comment immediately.
The provisional government data shows that India was also the net importer of finished steel for two consecutive years in the 2024/25 fiscal year, with imports hitting a nine-year peak of 9.5 million metric tons.
Imports from China, South Korea, and Japan hit a record high in the last 10 months of the financial year, until March. 78% of India’s overall finished imports are from these countries. India’s smaller mills are forced to reduce their production and are also considering cutting down on jobs.
India is joining several other nations in exploring ways to curb imports. Major steel producers, including JSW Steel, Tata Steel, the Steel Authority of India, and ArcelorMittal Nippon Steel India, have raised alarms over increasing imports and called for stricter trade barriers.