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India introduces three year import duty against low priced steel from China

India has introduced a variable import duty on selected steel products for a period of three years, aiming to curb low priced steel shipments, particularly from China.

India introduces three year import duty against low priced steel from China

According to a decision published by the Ministry of Finance on Tuesday, the duty rates will range between 11% and 12%.

Under the measure, locally referred to as a safeguard duty, the import levy will be set at 12% in the first year, 11.5% in the second year, and 11% in the third year. The regulation, published in the official government gazette, states that imports from certain developing countries are excluded, while products originating from China, Vietnam, and Nepal will be subject to the duty. Speciality steel products, including stainless steel, are excluded from the measure.

India’s Federal Ministry of Steel has repeatedly emphasized that the domestic steel sector should not be harmed by cheap imports and low quality products. In this context, the government had already introduced a temporary measure in April, imposing a 12% customs duty for a period of 200 days.

In its assessment, the Directorate General of Trade Remedies identified a sudden, sharp, and significant increase in steel imports in recent periods, stating that this trend has caused serious injury to the domestic industry and poses a further threat. Based on these findings, the authority recommended the implementation of a three year safeguard duty.

As trade protection measures continue to increase globally, it is noted that import tariffs imposed on steel by US President Donald Trump have triggered a new wave of trade tensions involving Chinese origin products. Following these developments, several countries, including South Korea and Vietnam, have also introduced anti dumping duties on steel imports during the first months of the year.

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