The tariff war between the US and China continues. Both these countries are levying heavy duty on each other. Meanwhile, India has also entered this tariff war. Importing steel from abroad in India can be expensive. According to news agency Reuters, India has imposed a temporary tariff of 12 percent on cheap steel imports as security fees. India has taken this decision as part of its efforts to prevent increase in imports of cheap steel from China and the rest of the world.
India is the second largest producer of raw steel
India is the second largest producer of raw steel in the world. Increasing steel imports from China in recent years have compelled some Indian mills to reduce operations and consider job cuts. India is one of the many countries that have taken action to prevent imports to protect the local industry. In the financial year 2024-25, the second year in a row, India imported more finished steel than exports. According to the provisional data of the government, the import of raw steel reached 9.5 lakh metric tons, which is the highest record in 9 years.
The DGTR recommended this after investigation.
Last month, the Director General of Trade (DGTR) under the Union Ministry of Trade (DGTR) recommended 12% tariff on some steel products as part of efforts to curb cheap imports. This tariff was recommended to be applied for 200 days. The recommendation was made after an investigation conducted in December last year, stating that Belgaum imports have damaged India’s domestic steel industry.
This tariff will be effective for 200 days
According to Reuters, the Finance Ministry said in an official order that the tariff would be effective for 200 days from Monday, until it is canceled, replaced or modified. India’s move is the first major change in New Delhi’s trade policy since US President Donald Trump imposed extensive fees on various countries on April 2. Significantly, the trade war between the US and China has started after Trump’s charge, but there is already tension about the import of cheap steel in India and its investigation started in December.
Steel Minister said this
India’s Steel Minister H.D. Kumaraswamy said in a statement that the purpose of this measure is to protect domestic steel manufacturers from the adverse effects of increasing imports and to ensure fair competition in the market. Kumaraswamy said, “The move will provide significant relief to domestic manufacturers, especially small and medium enterprises, who are facing heavy pressure due to increasing imports.”
Large steel companies of the country will get relief
The country’s major steel productive companies such as JSW Steel, Tata Steel, Steel Authority of India (SAIL) and Arcelor Mittal Nippon Steel India were constantly demanding the government to curb cheap imports. These companies say that if these tariffs are not imposed, the domestic steel industry will suffer heavy losses and millions of jobs will be in danger.
