The Indian government may impose a three-year import tariff of 11–12 per cent on some selected steel products, if it heeds to a communique by its Directorate General of Trade Remedies (DGTR) on August 16.
The proposed tariff on steel imports would begin at 12% in the first year, reduce to 11.5% in the second, and further drop to 11% in the third, Reuters reported.
The move would curb rising shipments from top steel producers like China, whose oversupply has disrupted global markets.
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"The Authority concludes that there is a recent, sudden, sharp and significant increase in imports," the DGTR notification said, adding that this could cause serious injury to the domestic steel sector.
This latest recommendation follows a temporary 12% safeguard duty imposed by India in April for 200 days after preliminary findings showed a steep increase in steel imports. The final recommendation now formalises the case for longer-term protection.
Global steel glut behind tariff push
The DGTR also said that due to 50% tariffs on steel imports into the US, coupled with similar measures by other countries, a bulk of steel volumes are lying with manufacturers across the world.
{{/usCountry}}The DGTR also said that due to 50% tariffs on steel imports into the US, coupled with similar measures by other countries, a bulk of steel volumes are lying with manufacturers across the world.
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"Therefore, the safeguard duty must address, not only the serious injury suffered by the domestic industry...but also the threat of serious injury that is likely to arise in the future."
Trade tensions on the rise as global steel tariffs tighten
The recommendation comes amid a wave of international trade protection against Chinese steel exports.
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US President Donald Trump's import tariffs on steel have fuelled a wave of trade frictions against Chinese steel, with countries including South Korea and Vietnam imposing anti-dumping levy.
In a related move, Japanese steel industry lobby groups have also called for faster action to prevent evasion of anti-dumping duties and protect their domestic markets from unfair imports.