India Imposes 12% Tariffs on Steel Imports: US President Donald Trump’s attempt to put pressure on India by imposing high tariffs had limited effect and had the opposite result. India’s exports increased and there was no major negative impact on the country’s economic growth rate i.e. GDP. Meanwhile, to strengthen its domestic industries, India has taken a tough stance against cheap products being dumped from China. Taking action against cheap steel imports coming from foreign markets, especially from China, the government has decided to impose tariff for three years.

Tariff on steel for three years

According to the notification issued by the Union Finance Ministry, this safeguard duty on steel products will be implemented in a phased manner. The tariff rate will be 12 percent in the first year, in the second year it will be reduced to 11.5 percent and in the third year it will be 11 percent. The government says that this decision has been taken keeping in mind the increasing trend of imports and the negative impact it is having on the domestic steel industry.

This tariff will mainly apply to steel shipments coming from China, Vietnam and Nepal, because steel imports from these countries at cheap prices have increased rapidly. However, the government has exempted some developing countries from this and has also clarified that this safeguard duty will not be applicable on stainless steel products.

Steps to save domestic industries

It has been said in the government order that after the recent sharp increase in imports, the Director General of Trade Remedies (DGTR) had conducted a detailed investigation into the entire matter. Investigation revealed that cheap imports could cause serious losses to domestic steel producers. After this, DGTR recommended imposing tariff for three years, which was accepted by the government.

According to Reuters report, this step has been taken at a time when the government had earlier imposed a temporary safeguard duty of 12 percent on the same steel products for 200 days in April. Steel Ministry officials say that low priced and poor quality steel imports adversely affect Indian industry, investment and employment, hence this decision was necessary to save the domestic steel sector.

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The Indian government on Tuesday (December 30, 2025) decided to impose import duty of 11-12 percent on select steel products for three years with the aim of curbing the increasing cheap steel imports from China. This fee will be 12 percent in the first year, will reduce to 11.5 percent in the second year and 11 percent in the third year.

Reason for sharp increase in imports from China
India, the world’s second largest crude steel producer, is facing growing pressure on the domestic steel industry due to a sudden surge in low-cost steel imports from China in recent months and serious anti-dumping concerns.

According to the notification published in the official gazette of the government, this import duty will not be applicable on steel coming from some developing countries, but China, Vietnam and Nepal will be affected by it. However, special steel products like stainless steel have been kept out of the scope of this duty.

Emphasis on protecting domestic industry from loss
The Steel Ministry says that it wants to protect the domestic steel industry from losses caused by cheap and poor quality imports. The Directorate General of Trade Remedies (DGTR) after investigation found that there has been a sudden and significant increase in imports, which threatens to cause serious injury to the domestic industry.

Temporary fee has already been imposed
Earlier in April 2025, the Government of India had imposed a temporary duty of 12 percent on steel imports from all countries for 200 days, the period of which ended in November 2025.

Warning and petition of industry organizations
Indian Stainless Steel Development Association had already raised this issue. In August 2025, the organization had filed a petition in DGTR demanding imposition of anti-dumping duty on cheap steel imports.

impact of global trade tensions
This step of India has come at a time when global trade tensions regarding Chinese steel exports are increasing. After US President Donald Trump imposed tariffs on steel imports, Chinese steel reached the markets of other countries, due to which many countries tightened their trade protection measures. South Korea and Vietnam have also imposed anti-dumping duty on steel coming from China this year.