India Temporary tariff on China: The Government of India is going to impose a temporary tariff (security duty) of 12% on steel imports soon. According to the report of Reuters, the decision aims to ban cheap steel imports from China and other countries, which has become a big challenge for the country’s domestic steel mills over the years. This tariff is being called a “security fee”, which was recommended by the Director General of Treatment (DGTR) to implement it. This fee can remain in force for 200 days.

What do you say data?
Despite being the second largest crude steel producer in the world, India has become a net importer of steel ready for the second consecutive year in 2024-25. According to government data, India’s finished steel imports reached 9.5 million metric tonnes last year, which is the highest in 9 years. China, South Korea and Japan have contributed 78% to India’s total steel import. Due to this increasing import, small steel companies of the country have been forced to reduce production and cut jobs.

Impact of DGTR investigation and recommendation
In December last year, DGTR started an investigation as to whether cheap steel imports are harming domestic companies. Investigation revealed that the existence of domestic industries is in danger due to foreign steel floods. After this, DGTR recommended 12% tariff in March. This recommendation is now under consideration with the Finance Ministry and according to sources it can be implemented soon.

Big steel companies will get relief from tariffs
The country’s leading steel manufacturers such as JSW Steel, Tata Steel, Steel Authority of India (SAIL) and Arcelor Mittal Nippon Steel India demanded constant control of cheap imports from the government. These companies say that if these tariffs were not installed, the domestic steel industry would have suffered heavy losses and the jobs of millions of people would be in danger.