By Kavita Mistry 
In a significant trade policy move, India has imposed a temporary 12% safeguard duty on certain steel imports to shield its domestic steelmakers from a flood of low-cost Chinese steel. The duty, effective for 200 days starting April 21, 2025, comes as India faces mounting pressure on local mills due to rising import volumes.
Steelmakers Struggling Under Pressure
India, the world’s second-largest crude steel producer, has seen several domestic mills scale down operations or consider job cuts, blaming cheap imports for undercutting their prices. Chinese steel, in particular, has flooded Indian markets in recent years, driving down margins for local producers.
“This move will provide critical relief to domestic producers, especially small and medium enterprises,” said Steel Minister H. D. Kumaraswamy, who called the safeguard duty essential for restoring fair market competition.
Trade War Ripple Effects
The 12% duty is India’s first major trade policy step since the Trump-era global tariff wars began in 2018. Although India’s own investigation into Chinese steel dumping began back in December, the global backdrop of rising protectionism adds urgency to the move.
India’s action mirrors global concerns, as several nations have expressed similar worries about the impact of China’s excess steel production on local industries.
China in the Crosshairs
In 2024–25, China was the second-largest steel exporter to India, just behind South Korea. India became a net importer of finished steel for the second consecutive year, with imports soaring to a nine-year high of 9.5 million metric tons.
Industry voices, including top players like JSW Steel, Tata Steel, and SAIL, have been urging New Delhi to intervene.
Will It Be Enough?
“This decision was expected,” said a senior steel executive, “but we now have to wait and watch whether it actually curbs imports and protects margins.”
As global steel dynamics remain volatile, India’s move signals a clear intent to support local manufacturing—and possibly, to redraw its steel trade policies for a more resilient industrial future.