India imposes three-year safeguard duty on steel imports to curb China surge

India has imposed a safeguard import duty of 11–12% on select steel products for three years, a move primarily aimed at restraining the inflow of low-priced steel from China.

According to the notification issued in the official government gazette on Tuesday, the tariff will be 12% in the first year, reduced to 11.5% in the second year, and further eased to 11% in the third year. The levy will apply to imports from China, Vietnam, and Nepal, while shipments from certain developing nations have been exempted. Speciality steel products, including stainless steel, are not covered under the duty.

India, the world’s second-largest producer of crude steel, has been facing a sharp rise in cheaper steel imports, particularly from China, which has raised concerns over dumping and intensified pressure on domestic manufacturers.

The safeguard duty follows a recommendation by the Directorate General of Trade Remedies (DGTR), which found a “sudden, sharp and significant increase” in steel imports that was causing, or threatening to cause, serious harm to the domestic industry. The government has repeatedly stated that it intends to protect Indian producers from injury caused by sub-standard and under-priced imports.

Earlier, in April 2025, the government had imposed a temporary 12% safeguard duty for 200 days on steel imports from all countries. That measure lapsed in November 2025.

Industry bodies had also raised alarms over the issue. The Indian Stainless Steel Development Association had submitted a petition to the DGTR in August 2025, seeking anti-dumping action against cheap steel imports.

India’s decision comes amid escalating global trade tensions linked to Chinese steel exports. Tariffs imposed by the United States under President Donald Trump have redirected Chinese steel shipments to other markets, prompting several countries to strengthen their trade defences. South Korea and Vietnam have already imposed anti-dumping duties on Chinese steel this year, citing market-distorting, low-priced exports.