The Global Trade Research Initiative (GTRI) has warned that the three-year safeguard duty on steel imports could have a detrimental effect on the auto, engineering, and construction sectors by increasing their input costs. The duty, which starts at 12% and decreases to 11% over three years, was initiated by the Directorate General of Trade Remedies (DGTR) in response to a “sharp surge” in imports and a decline in domestic industry profits. The DGTR’s investigation, which began in December 2024, covered a wide range of steel products, and a provisional 12% duty was already imposed in April 2025.
According to the GTRI report, stakeholders believe the duty will negatively affect export competitiveness and create sourcing challenges for downstream users. The report emphasizes that despite the stated profitability of domestic steelmakers, the tariffs would “cripple” the downstream sectors. This article presents a counterargument to the DGTR’s recommendation, highlighting the potential negative consequences of the tariffs on other industries.