Steel prices to rise? India planning 12% import duty to protect domestic players

The import tax, known as a safeguard duty, could kick in at a time when US President Donald Trump’s sweeping import tariffs have sparked fears of a trade war.

Updated on: Mar 19, 2025, 10:40:49 IST

By HT News Desk | Edited by Ashley Paul

Prefer HTon Google

Share via

Copy link

The Indian government is planning to impose a 12% tariff on most types of steel imports to protect domestic industries. The world's second-largest steel producer, is planning to impose the tariff for a period of 200 days.

“There exist critical circumstances, where any delay in application for provisional safeguard measures would cause damage which it would be difficult to repair,” the government said in its recommendation. (Reuters)

According to a preliminary decision published by the Union Ministry of Commerce and Industry on Tuesday as a gazette notification, comments have been invited to help the ministry in making a final recommendation after a later hearing.

Also read: Google buys Wiz: Backer Sequoia Capital to reap 25-fold return from the deal

“There exist critical circumstances, where any delay in application for provisional safeguard measures would cause damage which it would be difficult to repair,” the government said in its recommendation.

The imposition of the import duty will being relief to Indian steel producers like Jindal Steel and Power and JSW Steel, who are among companies that have asked the government for protection from low-cost imports from countries like China.

Also read: Ad giants GroupM, Dentsu & broadcasters' body raided by CCI over price collusion: Report

The import tax, which is also called a safeguard tax, could become effective at a time when US President Donald Trump's tariff policies have sparked fears of a long-term tariff war.

India, along with Vietnam, is among the fast-growing Asian producers that may face a glut of steel.

India joins countries from Saudi Arabia to Vietnam and Chile in wielding trade measures to limit cheaper inflows, fueled by a surge of steel coming from China. Chinese producers have leaned heavily on exports, prompting a wave of trade measures in 2024.

Also read: Melinda wants people to see her thriving after divorce from Bill Gates: ‘Not something I’d wish on any family'

Though China’s steel producers have reduced production, the country is still making a lot more steel than it needs domestically.

Safeguard measures are used “in times of increased, unfavourable and unforeseen imports that cause or threaten to cause permanent damage to the domestic industry,” the ministry’s statement said.

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

Tariff

Stay updated with the latest Business News, stock market updates, petrol and diesel prices, gold and silver rates, income tax updates and major developments from India and across the world.