After Trump, India plans sweeping steel tariffs amid global protectionist wave: Report
New Delhi: India is preparing to impose broad trade tariffs on steel, aligning with a global trend of protectionism, according to a Bloomberg report.
The move comes just a week after U.S. President Donald Trump introduced duties on all American steel imports.
With the global steel market in turmoil due to a surge in supply—particularly from China, the world’s largest producer—India’s Commerce Ministry has proposed a temporary 12% safeguard duty on a wide range of steel products, the report said, citing a statement released on Tuesday.
The announcement lifted steel stocks in India, with shares of state-run Steel Authority of India Ltd. climbing as much as 5%, while Tata Steel Ltd. and Jindal Steel & Power Ltd. gained 2.9% and over 2%, respectively.
Despite some production cuts, China continues to manufacture steel far beyond its domestic demand, pushing exports to a nine-year high in 2024.
India has also highlighted the impact of widespread trade restrictions, slowing demand, and increasing steel capacity across Asia.
“There exist critical circumstances, where any delay in application for provisional safeguard measures would cause damage which it would be difficult to repair,” the ministry stated.
Government data shows that finished steel imports from China surged 80% to 1.6 million tons in the first seven months of 2024.
While India’s steel production has expanded significantly over the past decade, it remains only about 15% of China’s total output. However, Indian producers have ambitious long-term expansion plans to support urbanisation and industrialisation.
If implemented, the safeguard duty would provide much-needed relief to domestic steelmakers, who, through the Indian Steel Association, had urged the government to impose protective measures for four years.
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