India has imposed a three-year import tariff ranging between 11 percent and 12 percent on selected steel products, according to a finance ministry order published on Tuesday, as part of its effort to curb the inflow of low-cost steel shipments from China. The levy, referred to domestically as a safeguard duty, will be set at 12 percent during the first year, reduced to 11.5 percent in the second year, and further eased to 11 percent in the third year. The government said this phased structure is intended to protect domestic producers while allowing the market to gradually adjust over time without causing sudden disruptions to supply chains.

The safeguard duty, published in the official government gazette, excludes imports from certain developing countries, although shipments originating from China, Vietnam, and Nepal will remain subject to the levy. In addition, the measure does not apply to specialty steel products such as stainless steel, which are considered critical for specific industrial applications and are not produced in sufficient quantities domestically. By limiting the scope of the duty, the government aims to strike a balance between protecting local manufacturers and ensuring the availability of essential steel products for downstream industries.

The federal steel ministry has consistently maintained that it will not allow the domestic steel industry to suffer due to a surge in cheap imports or the entry of sub-standard products into the Indian market. In April, the government had already imposed a temporary 12 percent tariff for a period of 200 days to provide immediate relief to local producers facing intense import pressure. However, officials later concluded that a longer-term measure was necessary to safeguard the industry’s stability and employment levels.

The Directorate General of Trade Remedies recommended the three-year safeguard duty after determining that there had been a “recent, sudden, sharp, and significant” increase in steel imports, which was causing and threatening to cause serious injury to domestic manufacturers. The order cited declining capacity utilization and mounting financial stress as key concerns. Globally, India’s move comes amid heightened trade tensions triggered by U.S. President Donald Trump’s steel tariffs, which redirected Chinese exports toward other markets and prompted countries such as South Korea and Vietnam to impose anti-dumping duties earlier this year.

Disclaimer: This image is taken from India Today.