India has proposed a three-year import tariff of 11-12% on certain steel products to curb shipments from China. The tariff, recommended by the Directorate General of Trade Remedies (DGTR), would start at 12% in the first year, then decrease to 11.5% and 11% in the following years. The DGTR stated that there has been a “recent, sudden, sharp and significant increase in imports” which could cause serious injury to the domestic steel industry. The DGTR also noted that tariffs imposed by the U.S. and other countries have led to a surplus of steel globally, increasing the threat of future injury to India’s domestic industry.
This recommendation follows a temporary 12% tariff that the Indian government imposed for 200 days in April. The DGTR’s investigation began in December 2024 after complaints from major domestic producers like AMNS, JSW Steel, Jindal Steel & Power, and SAIL. The report from the Global Trade Research Initiative (GTRI) warns that these safeguard duties could harm the auto, engineering, and construction sectors by increasing their input costs. Despite this, the DGTR’s final order maintains the need for the tariffs due to the sharp increase in imports and a decline in the profits of the domestic steel industry.