India's Strategic Steel Tariff: A Guard Against Rising Imports

India has enforced a 12% temporary tariff on specific steel products to control excessive imports, primarily targeting China. This measure, valid for 200 days, marks India's significant trade policy action after the U.S. imposed various duties. The move follows a substantial steel import rise in 2024/25.

In a significant trade policy move, India has imposed a 12% temporary tariff, termed as a safeguard duty, on certain steel products. The government's announcement on Monday underscores its effort to curb the surge in steel imports, effective for a period of 200 days, as stated in a notification by the Ministry of Finance.

This decision comes on the heels of U.S. President Donald Trump enacting a broad spectrum of tariffs in April. India's tariffs are especially directed towards China, historically the second-largest steel exporter to India after South Korea in the fiscal year 2024/25.

Notably, India found itself as a net importer of finished steel for the second consecutive year in 2024/25, with import figures peaking at a nine-year high of 9.5 million metric tons. Concerns from prominent steel manufacturers, including JSW Steel and Tata Steel, along with the Steel Authority of India and ArcelorMittal Nippon Steel India, influenced this protective measure.

(With inputs from agencies.)