India places steel duty due to concerns of Chinese ‘dumping’
(MENAFN) India has introduced a 12% duty on steel imports to counter a significant rise in low-cost shipments from countries like China, the Finance Ministry in New Delhi announced on Monday. Safeguard duties are typically implemented when domestic industries face substantial threats from imports, and this move follows the 25% tariffs on steel and aluminum imports imposed by the US under President Donald Trump.
The imposition of these tariffs could prompt steel exporters to "dump" their products into other markets, with India becoming a prime target. Indian Steel and Heavy Industries Minister H.D. Kumaraswamy stated that the safeguard duty would offer crucial relief to domestic producers, especially small and medium-sized enterprises, which have been severely affected by the influx of cheap imports.
India, the world’s second-largest producer of crude steel, finished the 2024-25 fiscal year as a net importer of finished steel for the second year in a row. Preliminary data showed that imports reached a nine-year high of 9.5 million metric tonnes, with about 78% of these imports coming from China, South Korea, and Japan. The surge in imports has created significant challenges for domestic steel producers, particularly smaller mills, forcing them to cut back on production and contemplate layoffs.
This move marks New Delhi’s first major trade policy shift since Trump’s wide-ranging tariffs were imposed in April, which led to a trade conflict with China. Earlier this month, India established a committee to monitor and prevent goods diverted from the US and China from entering the Indian market due to the ongoing trade war. The committee, led by Commerce Secretary Sunil Barthwal, includes officials from various ministries and customs agencies.
The enforcement of Trump’s proposed tariffs has been delayed by a 90-day pause to allow for further negotiations. Currently, US Vice President J.D. Vance is in India discussing the progress of a bilateral trade agreement between the two nations.
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