Tariffs: India imposes 12% temporary tariff on steel imports, to remain in force for 200 days
New Delhi| India has imposed a 12 per cent temporary tariff on some steel products to prevent unbridled imports. This tariff is known locally as a security charge. The government also issued a notification in this regard on Monday. On this decision, Union Steel Minister HD Kumaraswamy said on Monday that the government’s decision to impose 12 per cent safeguard duty on imports of some steel products will provide relief to domestic producers, mainly SMEs, who are facing huge pressure due to increasing imports.
India, the second largest producer of crude steel in the world, said the tariff, effective Monday, has been imposed for 200 days. The security charges imposed under this notification will remain in effect for a period of two hundred days from the date of publication of this notification (unless it has already been cancelled, replaced or amended), the Finance Ministry said.
The increase in duty on steel is the first major trade policy step by India after US President Donald Trump imposed comprehensive tariffs against various countries in April. India’s tariffs are mainly targeted at China which was the second largest exporter of steel to India after South Korea in 2024-25. India imported 9.5 million tones of finished steel in FY 2024-25 for the second consecutive year, the highest in nine years, according to provisional government data. Indian steel producers had demanded the government to curb unbridled imports.
Domestic producers will get relief
Union Steel Minister HD Kumaraswamy said the move will provide relief to domestic producers, especially small and medium-scale enterprises, which are facing huge pressure from rising imports. Safeguard charges will help restore stability in the market and strengthen the confidence of the domestic industry. According to the Steel Ministry statement, the minister said the measure is a timely and necessary step to protect domestic steel manufacturers from the adverse impact of increased imports and ensure fair competition in the market. He said the Steel Ministry is committed to working with all stakeholders to ensure that the domestic steel sector remains strong, self-reliant and globally competitive. Indian Steel Association president Naveen Jindal said in the statement, ‘‘We welcome the government’s decision to impose a safeguard duty of 12 per cent on certain steel products. This important step will protect Indian manufacturers from unfair exports, help increase domestic production and take our step towards a strong self-reliant India. We thank Prime Minister Narendra Modi for his visionary leadership and support to the steel sector.’’
