FX.co ★ India Slaps 12% Temporary Tariff on Steel Imports

India, recognized as the world’s second-largest producer of crude steel, has introduced a temporary 12% tariff, referred to locally as a safeguard duty, on certain steel imports to address the influx of low-cost shipments, predominantly from China. This tariff, which takes effect on Monday, April 21, and will last for 200 days, aims to shield domestic producers from what the government deems as unfair competition. Steel Minister H.D. Kumaraswamy emphasized that this measure would offer essential relief to local steel manufacturers, particularly small and medium-sized enterprises facing challenges from increasing imports. According to the Ministry of Finance, this duty may be adjusted or removed earlier if necessary. This initiative represents India’s first significant trade policy adjustment following the comprehensive tariffs imposed by the U.S. during President Trump's tenure. The primary focus of this measure is on China, the second-largest steel exporter to India, succeeding South Korea in the fiscal year 2024/25. India has remained a net importer of finished steel for two successive years, with imports in 2024/25 reaching a nine-year peak of 9.5 million metric tons.