India announces 12% steel tariff to rein in Chinese imports
What's the story
India has imposed an import tariff of 11-12% on select steel products, in a bid to curb cheap imports from China. The duty will be levied at 12% in the first year, reducing to 11.5% in the second and finally settling at 11% in the third year. The move comes as part of India's efforts to protect its domestic steel industry from a surge of low-priced imports from China.
Duty details
Tariff exemptions and exclusions
The newly imposed tariff, published in an official government gazette, exempts imports from select developing nations. However, China, Vietnam, and Nepal will have to pay the duty. Notably, specialty steel products such as stainless steel are exempt from this levy. The move comes after a recommendation by the Directorate General of Trade Remedies (DGTR), which found a sharp increase in imports threatening serious injury to India's domestic industry.
Industry protection
India's stance on cheap imports and sub-standard products
The Indian government has been vocal about its intention to protect the domestic steel industry from cheap imports and sub-standard products. This is in line with the DGTR's recommendation for a three-year duty, which was based on evidence of a sudden spike in imports. The move also comes amid global trade tensions over Chinese steel exports, particularly after US President Donald Trump's decision to impose import tariffs on steel.
Trade tensions
Global response to China's steel exports
India's decision comes as part of a wider global response to China's steel exports. The US tariffs have redirected Chinese shipments to other markets, prompting countries like South Korea and Vietnam to impose anti-dumping duties on Chinese steel products. These measures are aimed at countering what governments describe as market-distorting, low-priced exports from China.