India Imposes a 3-Year Tariff on Steel Products; Imports from China to be Affected

According to an order issued by the Ministry of Finance, India has imposed a three-year import duty of 11-12 per cent on certain steel products. This move aims to cut down the influx of low-priced steel from China.

The official government gazette has stated that the duty will be 12% in the first year. In the second year, it will reduce to 11.5%. By the third year, it will further lower to 11%.

What Prompted India To Take This Decision

The reason behind India taking this step is the rise of cheap steel imports from China. It raised concerns about unfair pricing practices.

Domestic steel producers felt pressure from these imports. According to the government, the sharp surge in steel imports has already caused damage and could further affect Indian manufacturers.

It necessitated India's decision on a temporary safeguard duty on these steel products.

Steel Tariffs Hit China, Vietnam, Nepal; Developing Nations Get a Pass

Apart from China, Nepal, and Vietnam, which are subject to the duty, some developing nations are exempted from it.

The tariff does not include specialised steel items such as stainless steel. The government had earlier announced a short-term safeguard duty of 12% effective for 200 days.

Steel Imports to Face Safeguard Duty Following DGTR Report

The government will implement the following safeguard duties on steel imports. It was decided after reviewing the Director General (Trade Remedies) report.

• 12% for imports between April 21, 2025, and April 20, 2026
• 11.5% for imports between April 21, 2026, and April 20, 2027
• 11% for imports between April 21, 2027, and April 20, 2028

FAQs

Q: How much import steel duty has India imposed on Certain Steel products?

A: India has imposed a three-year import duty of 11-12 per cent on certain steel products. This move aims to bring down the influx of China’s low-priced steel.

Q: Why did India take this decision?

A: The reason behind India taking this step is the rise of cheap steel imports from China. It raised concerns about unfair pricing practices.

Q: India has applied a steel tariff duty on which countries?

A: India has imposed a steel tariff duty on China, Vietnam, and Nepal. It has exempted some developing nations.

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