India Imposes Three-Year Import Duty on Select Steel Products to Protect Domestic Industry

In a bid to shield its steel sector from cheap imports, India has announced a three-year safeguard duty on select steel products, with tariffs ranging from 12% in the first year to 11% in the third, according to a finance ministry order published Tuesday (December 30, 2025). The measure primarily targets shipments from China, Vietnam, and Nepal, while imports from certain developing countries and specialty steel products like stainless steel remain exempt.

Safeguard Duty Structure

The levy will be applied as follows:

• First year: 12%

• Second year: 11.5%

• Third year: 11%

The government previously imposed a temporary 200-day duty of 12% in April 2025, signaling its continued concern over the impact of low-cost imports on domestic producers.

Rationale Behind the Measure

The Directorate General of Trade Remedies (DGTR) recommended the duty after an investigation found a “recent, sudden, sharp and significant increase in imports” that was causing or threatening to cause serious injury to India’s domestic steel industry. The federal steel ministry emphasized that the goal is to protect Indian manufacturers from sub-standard products and prevent injury to the sector without hampering overall trade.

Officials note that the duty is a preventive measure designed to provide Indian steelmakers with breathing space to maintain competitiveness amid global market fluctuations.

Global Context

India’s safeguard duty comes amid ongoing trade tensions in the steel market. Earlier this year, countries including South Korea and Vietnam imposed anti-dumping measures, while U.S. President Donald Trump’s steel tariffs triggered a wave of global trade friction, particularly concerning Chinese steel exports.

Industry experts suggest that the new three-year duty will give domestic producers a buffer against volatile global pricing, encouraging stable production and investment in the sector, while also signaling India’s intent to assert protective trade policies in critical industries.

Domestic Industry Response

Steel manufacturers have welcomed the move as a necessary step to ensure fair competition and sustain employment. The government, meanwhile, has pledged to monitor import trends and adjust policies as needed to safeguard both the industry and consumers.

With the three-year safeguard duty now in effect, India joins other major steel-consuming nations in adopting measured trade remedies to maintain industrial resilience in the face of global price pressures and import surges.