India Shields Steel Sector: New Import Safeguards Imposed

India has implemented a safeguard duty on certain steel products to protect its domestic steel industry from rising imports. The new tariff will escalate from 12% to 11% over three years, following investigations which revealed a surge in imported steel threatening local producers.

The Indian government has enacted a safeguard duty on specific non-alloy and alloy steel flat products to shield the domestic steel industry from a significant influx of imports, as revealed by an official announcement on Tuesday. This action follows a comprehensive investigation by the Director General (Trade Remedies) (DGTR), which identified a 'recent, sudden, sharp and significant' increase in steel imports, causing potential damage to domestic manufacturers.

The notification declared that the Central Government, considering the DGTR's findings, now imposes this duty on steel products under tariff headings 7208, 7209, 7210, 7211, 7212, 7225, and 7226, as imported into India. The measure covers products like hot rolled coils, sheets and plates, cold rolled coils and sheets, and various coated and color-coated steel products.

The safeguard duty, fixed at 12% ad valorem, takes effect from April 21, 2025, to April 20, 2026, gradually reducing to 11.5% and ultimately 11% by April 2028. Previously, a provisional duty was in effect for 200 days starting April 2025, guided by DGTR's initial analysis. As of August 2025, further analysis reaffirmed the threat of imports, prompting longer-term tariff measures. However, the duty won't apply during the interim between the lapse of the provisional duty and the final notification release.

(With inputs from agencies.)