In FY25, India’s finished steel imports soared to a 10-year high of 9.5 million tonnes (mt), while exports slumped to a decade-low of 5 mt, making India a net importer for the second consecutive year and the third time in a decade.
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AMIT DAVE
New Delhi, April 10: As the US slams 125 per cent tariffs on Chinese imports, India is considering a 20 per cent safeguard duty on steel imports to counter dumping threats, intensifying a global trade war over the alloy.
The US move, effective midnight April 9, saw President Trump hike tariffs from 104 per cent — a mix of a 20 per cent baseline and a 34 per cent reciprocal levy — to a staggering 125 per cent, with an additional 50 per cent jump. This escalation marked a new peak in the US-China trade war and has stoked fears that China may redirect its steel surplus to markets like India, where domestic industries are already reeling.
ASEAN shipments are also under scrutiny, as China often routes steel through regional partners to evade restrictions.
Meanwhile, India’s Steel Ministry is responding with urgency. It is reviewing recommendations from the Directorate General of Trade Remedies (DGTR) and may push for a steeper safeguard duty than initially proposed.
The ministry had, in its original submissions, sought a 20 per cent levy to shield local producers, and recent high-level talks with the Commerce Ministry underscored the need for action.
Officials were asked to analyse steel shipments from China and ASEAN nations, assess the “threat and concerns,” and propose “appropriate interventions”.
“The fear of Chinese steel flooding India at below-production costs is real and happening now,” a senior official told businessline, citing discussions at a top-level meeting earlier this week.
The Ministry has also enlisted the Finance Ministry to expedite the DGTR’s March recommendation of a 12 per cent provisional duty for 200 days, targeting imports from China and Vietnam. Sources say this could be a first step, with plans to revise rates higher after further review.
A safeguard duty is a temporary tariff or tax imposed to protect domestic industries from sudden import surge or unfair trade practices such as dumping.
Steel sector under siege
In FY25, India’s finished steel imports soared to a 10-year high of 9.5 million tonnes (mt), while exports slumped to a decade-low of 5 mt, making India a net importer for the second consecutive year and the third time in a decade.
The DGTR’s provisional duty, exempting most developing nations except China and Vietnam, is aimed to curb the “serious injury and threat” to domestic mills. But the US’s aggressive tariff hike has raised the stakes, prompting India to rethink its defences.
“Internally, we’re again pitching for a 20 per cent safeguard duty,” a second official said. “We may take this up with other ministries again.”
The Steel Ministry is yet to respond to queries from businessline.
“We’re discussing implementing the 12 per cent duty first (as proposed by DGTR’s initial findings), monitoring its impact, then adjusting post-probe,” another official added. The Finance Ministry will take the final call on duty rates.
Published on April 10, 2025
