India plans steel tariffs of 12% to prevent ‘permanent damage’
India, along with Vietnam, is among the fast-growing Asian producers that may face a glut of steel
[NEW DELHI] India, the world’s second-biggest steel producer, is planning to impose duties of 12 per cent on most imports of the metal, the latest in a string of nations to seek protection for their domestic industries.
The country’s Ministry of Commerce and Industry has recommended the duties be applied for a period of 200 days, according to a preliminary decision published on Tuesday (Mar 18). The ministry’s trade directorate has invited comments and will make a final recommendation after a later hearing.
“There exist critical circumstances, where any delay in application for provisional safeguard measures would cause damage which it would be difficult to repair,” the government said in its recommendation.
The import tax, known as a safeguard duty, could kick in at a time when US President Donald Trump’s sweeping import tariffs have sparked fears of a trade war and forced the global steel industry to rewire trade routes. India, along with Vietnam, is among the fast-growing Asian producers that may face a glut of steel.
India joins countries from Saudi Arabia to Vietnam and Chile in wielding trade measures to limit cheaper inflows, fuelled by a surge of steel coming from China. Chinese producers have leaned heavily on exports, prompting a wave of trade measures in 2024. Though China’s steel producers have reduced production, the country is still making a lot more steel than it needs domestically.
If imposed, the duty will bring some relief to Indian steelmakers – such as Jindal Steel and Power and JSW Steel – that had asked the government for protection. India’s purchases of finished steel from China grew 80 per cent to 1.6 million tonnes in the first seven months of 2024, according to government data. Several Indian producers had requested the government to impose a safeguard duty for four years.
Safeguard measures are used “in times of increased, unfavourable and unforeseen imports that cause or threaten to cause permanent damage to the domestic industry”, the ministry’s statement said. BLOOMBERG
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