In a move aimed at protecting domestic steel producers, India has imposed a safeguard duty on certain steel importsfor the next three years, with a specific focus on curbing low-priced steel from China. The announcement, issued by the Ministry of Finance, comes amid concerns over rising imports that threaten to undermine the local steel industry.

Details of the safeguard duty

According to the government order published in the official gazette:

• 12% duty will apply on imports between April 21, 2025, and April 20, 2026.
• 11.5% duty will apply from April 21, 2026, to April 20, 2027.
• 11% duty will apply from April 21, 2027, to April 20, 2028.

The tariff will not cover imports from certain developing nations, nor will it apply to specialized steel items such as stainless steel. However, shipments from China, Vietnam, and Nepal will be directly affected.

Reason for the move

India has experienced a sharp rise in steel imports, particularly from China, raising concerns over dumping practices. Domestic manufacturers have argued that the sudden influx of cheap steel threatens their business and undermines the industry’s stability.

The government noted that the “recent, sudden, sharp, and significant increase in imports of subject goods into India has caused and threatens to cause serious injury to the domestic industry/producers of subject goods.” To address this, authorities deemed it necessary to impose a provisional safeguard duty to shield local producers.

Background

Earlier in April 2025, India had already implemented an interim safeguard duty of 12% for a period of 200 days, a temporary measure designed to counter rising imports. The new three-year tariff represents a more structured approach to protect domestic steel manufacturers over a longer horizon.

The order comes after a review by the Director General of Trade Remedies, which recommended the safeguard duty as a necessary step to stabilize domestic steel markets.

This measure reflects India’s broader strategy of balancing trade openness with industrial protection, particularly in sectors vulnerable to price undercutting and dumping by foreign suppliers.

By imposing these tariffs, India aims to support domestic steel producers while giving them breathing room to compete more effectively against low-cost imports, particularly from China, which remains the largest exporter of steel products to India.