India imposed 12% temporary tariff on steel imports, will remain in force for 200 days

India has implemented a temporary 12% safeguard duty on certain steel products to curb unchecked imports. The tariff is officially referred to as a safeguard duty. The government had announced said notification on Monday. Union Steel Minister HD Kumaraswamy stated on Monday that the government-imposed 12% safeguard duty on imports of certain steel products will be a relief for domestic producers, especially Small and Medium Enterprises (SMEs), who are under great distress due to rising levels of imports. 

India, the second largest producer of raw steel in the world, stated that the tariff has been imposed as of Monday. The tariff will remain in place for the next 200 days. The safeguard duty imposed in terms of the notification shall apply for a period of two hundred days from the date of publication of this notification (unless sooner repealed, replaced, or amended), the Finance Ministry stated.

The increase in duty on steel is the first major trade policy move by India after US President Donald Trump imposed sweeping tariffs against various countries in April. India's tariffs are mainly targeted at China, which was the second-largest exporter of steel to India after South Korea in 2024-25. According to provisional government data, India imported 9.5 million tonnes of finished steel in FY 2024-25 for the second consecutive year, the highest in nine years. India's steel producers had demanded the government to curb unbridled imports.

Union Steel Minister HD Kumaraswamy said the move would provide relief to domestic producers, especially small and medium-scale enterprises, who are facing heavy pressure from rising imports. The safeguard duty will help restore stability in the market and strengthen the confidence of the domestic industry. According to a statement from the Ministry of Steel, the minister said that this measure is a timely and necessary step to protect domestic steel manufacturers from the adverse impact of rising imports and ensure fair competition in the market. He said that the Ministry of Steel is committed to working with all parties to ensure that the domestic steel sector remains strong, self-reliant and globally competitive.

Indian Steel Association President Naveen Jindal said in a statement, "We welcome the government's decision to impose a safeguard duty of 12 per cent on certain steel products. This important step will protect Indian manufacturers from unfair exports, help increase domestic production and further our move towards a strong self-reliant India. We thank Prime Minister Narendra Modi for his visionary leadership and support to the steel sector.