The Union Finance Ministry has announced a three-year safeguard duty on certain steel imports, aimed at protecting domestic manufacturers from a surge in cheap foreign steel, particularly from China. The tariff will gradually decrease over the three years, starting at 12% in the first year and falling to 11% by the third year.
The safeguard duty will be levied as follows:
- 12% for imports between April 21, 2025, and April 20, 2026
- 11.5% for imports between April 21, 2026, and April 20, 2027
- 11% for imports between April 21, 2027, and April 20, 2028
The measure applies to steel imports from China, Vietnam, and Nepal, while certain developing countries and specialized steel products, including stainless steel, are exempt.
According to the Finance Ministry, the decision follows a significant rise in steel imports, which has raised concerns over dumping practices and put pressure on Indian steel producers. The ministry stated that the “sudden, sharp, and significant increase in imports of subject goods into India has caused and threatens to cause serious injury to the domestic industry.”
The government had earlier imposed an interim safeguard duty of 12% for 200 days in April 2025. The new three-year levy aims to provide a more structured protection for domestic manufacturers while giving time to adjust to market pressures.