India imposes 3-year tariff on steel imports

India has imposed a safeguard duty on select steel imports for a period of three years in a bid to curb the inflow of low-priced steel and protect domestic manufacturers, particularly amid rising imports from China.

According to an order issued by the finance ministry, the import duty will be levied at 12 per cent in the first year, reduced to 11.5 per cent in the second year, and further lowered to 11 per cent in the third year. The decision follows concerns over a sharp rise in steel imports that authorities say has caused, and could continue to cause, serious injury to the domestic steel industry.

The order noted that a “recent, sudden, sharp and significant increase” in imports of certain steel products had put pressure on Indian producers, necessitating the imposition of a safeguard duty to prevent encouraging further imports. The move is aimed at addressing alleged dumping practices and stabilising the domestic market.

While the duty will apply to imports from countries including China, Vietnam and Nepal, supplies from some developing nations have been exempted. Specialised steel products, such as stainless steel, have also been kept outside the scope of the tariff.

The safeguard duty will be implemented in phases. Imports made between April 21, 2025, and April 20, 2026, will attract a 12 per cent ad valorem duty. This will be followed by an 11.5 per cent duty on imports between April 21, 2026, and April 20, 2027, and an 11 per cent duty for shipments arriving between April 21, 2027, and April 20, 2028.

The latest order builds on an interim safeguard duty of 12 per cent that was imposed earlier in April for a period of 200 days, reflecting the government’s continued focus on shielding domestic steel producers from the impact of low-cost imports.