India imposes 12 per cent steel import tariff to curb Chinese influx

India has imposed an import tariff of 11-12 per cent on certain steel products in an apparent bid to protect the domestic steel industry from harm caused by the recent surge of steel imports from China.

According to a Reuters report, the tariff rate will be 12 per cent in the first year. In the second year, it would be reduced to 11.5 per cent and slashed further 11% in the third year.

The development comes at a time when India, the world’s second-largest crude steel producer, is struggling to deal with a sharp increase in the import of cheap steel from China, an issue that has given rise to anti-dumping concerns and put domestic steel manufacturers under pressure.

Specialised steel products exempted

The report further stated that the decision, published in a government gazette, excludes imports from some developing countries, although related imports from China, Vietnam, and Nepal will be subject to the tariff. However, specialised steel products, such as stainless steel, are exempt.

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The Steel Ministry has repeatedly asserted that it seeks to prevent any harm to the domestic steel industry from the import of low-priced and sub-standard products.

The Directorate General of Trade Remedies (DGTR) recommended the tariffs after noticing a "recent, sudden, sharp and significant increase in imports ... causing and threatening to cause serious injury to the domestic industry," stated the order as quoted by Reuters.

The Centre in April 2025 imposed a 12 per cent temporary tariff for 200 days on all imports, which expired in November 2025, reported India Today.

Issue flagged by Indian steel manufacturers

The Indian Stainless Steel Development Association had flagged the issue of rising imports of cheap Chinese steel. It filed a petition with the Directorate General of Trade Remedies in August 2025, urging the government to impose anti-dumping levies on cheap steel imports.

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The development comes at a time when the sweeping tariffs imposed by US President Donald Trump have created considerable trade fluctuations. The surge in imports of Chinese steel is also partially triggered by Trump’s tariffs, as they have redirected Chinese shipments to other markets, resulting in several countries tightening import restrictions, reported India Today.

Earlier this year, South Korea and Vietnam also imposed anti-dumping tariffs on Chinese steel products to curb low-priced exports from China.

(With agency inputs)