India Imposes Three-Year Tariff on Select Steel Imports to Curb Cheap Chinese Shipments
India has announced a new three-year import tariff on certain steel products to protect local manufacturers from a flood of cheap imports, particularly from China. This move was formally published in the government’s official gazette on 30 December 2025 and takes effect immediately.
The tariff is set as a safeguard duty ranging between 11% and 12%. In the first year, the duty will be 12%, then drop to 11.5% in the second year, and 11% in the third year.
This measure replaces a temporary 200-day tariff that was in place earlier in 2025 but expired in November.
Why the Government Took Action
The decision follows concerns raised by the Directorate General of Trade Remedies (DGTR) that low-priced steel imports had risen sharply and were threatening serious injury to the domestic industry.
India is the world’s second-largest crude steel producer, but has seen an increase in imported steel that undercuts local pricing. The government has said it wants to protect Indian producers from unfair competition and sub-standard products.
While the tariff covers many steel goods, speciality items such as stainless steel are not included.
The new duty also applies to imports from China, Vietnam and Nepal, even though some developing nations are generally exempt from such measures.
Impact on Markets and Industry
The tariff announcement has had a positive effect on Indian steel stocks. Shares of major companies such as Tata Steel, JSW Steel and Jindal Steel rallied, rising by 2-4% in early trade after the news broke.
Investors welcomed the move, seeing it as a boost to domestic pricing power and a way to reduce reliance on cheap foreign steel.
Industry bodies had previously called for stronger protection. For example, the Indian Stainless Steel Development Association flagged cheap imports and sought safeguard duties earlier in 2025.
Broader Trade Context
This action comes amid global trade tensions, especially around steel exports from China. Countries, including South Korea and Vietnam have also taken trade defence measures against low-priced Chinese steel.
India’s approach aims to strike a balance between free trade and protecting local industry, giving domestic producers time to adjust while keeping the market open to fair competition.
Nitin Konde
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