By Neha Arora and Surbhi Misra
NEW DELHI (Reuters) -India, the world’s second-biggest producer of crude steel, on Monday imposed a 12% temporary tariff on some steel imports, locally known as a safeguard duty, to curb a surge in cheap shipments primarily from China.
A flood of Chinese steel in recent years has pushed some Indian mills to scale down operations and mull job cuts, and India is one of a number of countries to have contemplated action to stem imports to protect local industry.
The Ministry of Finance said in an official order that the duty would be effective for 200 days from Monday, “unless revoked, superseded or amended earlier”.
The move is New Delhi’s first big trade policy shift since U.S. President Donald Trump imposed a wide range of tariffs on countries in April, kicking off a bitter trade war with China.
Tensions over cheap steel imports into India predate that, with the investigation behind the latest move beginning in December.
India’s Steel Minister H. D. Kumaraswamy said in a statement the measure is aimed at protecting domestic steel manufacturers from the adverse impact of a surge in imports, and will ensure fair competition in the market.
“This move will provide critical relief to domestic producers, especially small and medium-scale enterprises, who have faced immense pressure from rising imports,” Kumaraswamy said.
New Delhi’s tariffs are primarily aimed at China, which was the second-biggest exporter of steel to India behind South Korea in 2024/25.
“The decision is along expected lines and we will now wait and see how this measure supports (the) industry and margins and restricts cheap imports into the country,” said a senior executive at a leading Indian steel mill.
“The world is impacted by Chinese imports whether directly or indirectly,” said the executive.
India was a net importer of finished steel for a second straight year in 2024/25, with shipments reaching a nine-year high of 9.5 million metric tons, according to provisional government data.
New Delhi’s leading steelmakers’ body – which counts JSW Steel and Tata Steel among members, alongside the Steel Authority of India and ArcelorMittal Nippon Steel India – has raised concerns over imports and called for curbs.
(Reporting by Neha Arora and Surbhi Misra; Editing by Alison Williams, Toby Chopra, Mayank Bhardwaj and Jan Harvey)
