India plans 12% steel import duty to protect local industry

The Indian government plans to impose a 12% import duty on most steel imports. This move aims to protect local steel producers from low-cost imports, particularly from China. The tariff is set to last for 200 days. The Union Ministry of Commerce and Industry announced the preliminary decision in a gazette notification. They are inviting comments to finalize the recommendation after a public hearing. The government believes that delays in applying for these protective measures could harm domestic steel companies. Indian companies like Jindal Steel and Power and JSW Steel have requested support to compete against cheaper imports. This tariff could provide much-needed relief to them. The steel import duty may come into effect amid rising concerns about a trade war, partly fueled by U.S. tariffs under President Donald Trump. Countries like India, Vietnam, and others are facing challenges due to an influx of steel, especially from China. Despite efforts by China to reduce steel production, they still produce far more than they use. The Indian government views these safeguard measures as necessary in response to increasing imports that could seriously impact the domestic industry.