Steel Under Siege: India To Tighten Trade Rules Amid Rising Global Pressures

Unknown Apr 02, 2026 750 Views

India is moving swiftly to impose a temporary safeguard duty on steel imports “at the earliest,” as confirmed by a senior government source. This urgent action comes in response to the escalating US-China tariff war, which has triggered fears of a surge in cheap steel imports—pa...

Key Highlights:

Immediate Safeguard Duty in Focus: The Directorate General of Trade Remedies (DGTR) has recommended a 12% provisional safeguard duty on select flat steel products for 200 days to protect domestic producers from a sudden spike in imports. The final decision rests with the Ministry of Finance, but officials are pushing for rapid implementation to prevent “serious injury” to Indian mills.
Pressure for Higher Tariffs: While the current recommendation is for a 12% duty, the Steel Ministry is considering a more aggressive 20% safeguard duty, especially after the US imposed a record 125% tariff on Chinese steel. The move aims to counteract potential dumping and trade diversion, as Chinese exporters may reroute excess steel through ASEAN nations to India.
Industry Under Stress: India’s finished steel imports have soared to a decade-high of 9.5 million tonnes in FY25, while exports have dropped to a ten-year low. Smaller Indian mills are already scaling down operations and considering job cuts due to the influx of cheap imports, primarily from China, South Korea, Vietnam, and Japan.
Potential Impact: Analysts estimate that a 12% safeguard duty could halve India’s steel imports in FY2025/26 and significantly boost the profitability and capacity utilization of domestic steelmakers like JSW Steel, Tata Steel, and SAIL. Flat steel products, which account for 90% of imports, would see the most immediate relief.
Next Steps: The DGTR has invited stakeholder comments and will hold an oral hearing before a final decision. The Finance Ministry is expected to act quickly, given the urgency highlighted by industry leaders and the risk of irreparable harm to the sector.

With global trade dynamics rapidly evolving and the threat of Chinese dumping intensifying, India’s safeguard duty is set to provide a crucial buffer for its domestic steel industry—potentially reshaping the market landscape in the coming months.

Source: Reuters, The Hindu Business Line, Economic Times

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