India Imposes 3-Year Steel Import Tariff to Curb Cheap Chinese Shipments

To protect its domestic industry, India has imposed a three-year safeguard duty on certain steel imports, targeting a surge in cheap shipments, mainly from China. The tariff will decrease from 12% in the first year to 11% in the third.

India has taken decisive action to protect its domestic steel industry by imposing a three-year tariff on certain imported steel products, aiming to stem a surge in low-priced shipments, particularly from China, according to a Reuters report.

Under a new finance ministry order published in the official gazette on December 30, 2025, New Delhi will levy a safeguard duty ranging from 12% in the first year to 11% in the third year on selected steel imports. The duty will be set at 12% in year one, easing to 11.5% in year two, and then to 11% in year three, reflecting the government’s calibrated approach to protect producers while allowing gradual market adjustment.

The move follows earlier measures, including a temporary 200-day tariff of 12% on certain steel imports imposed in April 2025, which expired in November. The Directorate General of Trade Remedies (DGTR) recommended the extended safeguard duty after identifying a “recent, sudden, sharp and significant increase” in steel imports that threatened serious injury to domestic steelmakers.

While the duty is broadly aimed at curbing cheap imports, it excludes specialty steel products such as stainless steel from the levy. Additionally, although several developing countries are generally exempt from safeguard duties, China, Vietnam, and Nepal will be subject to the tariffs, underscoring New Delhi’s focus on addressing unfairly priced shipments that undercut local production.

India, the world’s second-largest crude steel producer, has faced increasing pressure from imported steel in recent years, with industry bodies and government agencies urging more robust trade defenses to shield domestic players. The latest safeguard duty reflects broader global trade tensions, particularly around Chinese exports, which have prompted similar protective actions by other countries in recent months.

By implementing this graduated tariff structure, the government aims to balance its commitment to open trade with the need to sustain local industry competitiveness, reduce dependency on cheap foreign steel, and support long-term growth in the Indian steel sector.