India Considers Raising Protective Duty on Steel Imports to 24%

India Weighs Increasing Steel Safeguard Duty Amid Chinese Circumvention Concerns

India is considering raising the safeguard duty on steel imports to 24%, up from the current 12%, to address concerns about Chinese exporters circumventing existing measures. The government received multiple complaints about attempts by Chinese players to bypass the safeguard duty, which aims to protect the domestic steel industry. Therefore, authorities are evaluating several options to strengthen trade defense mechanisms and curb unfair pricing. Meanwhile, Indian small steel producers voice concerns over higher domestic prices caused by these duties, urging the government to balance protection with affordability.

Focus on Domestic Steel Production and Government Project Prioritization

India’s steel safeguard duty, currently imposed temporarily for 200 days from April 21, 2025, protects local manufacturers against dumped or subsidized imports. In addition to these measures, India recently mandated that all steel used in government-funded projects must comply with “smelted and cast” requirements. This rule ensures the use of domestically produced steel made from basic raw materials, reinforcing the country’s push to strengthen its steel sector. As a result, these initiatives support local steelmakers while aiming to deter trade diversion from markets like the US and Europe.

SuperMetalPrice Commentary:

India’s potential increase of the steel safeguard duty to 24% signals a firm stance against unfair trade practices, particularly amid rising concerns about Chinese circumvention tactics. However, policymakers must carefully weigh the impact on domestic consumers and smaller steel producers who face cost pressures. The emphasis on sourcing domestically produced steel for government projects further underlines India’s commitment to building a self-reliant industrial base. This strategy aligns with broader global trends where governments balance protectionism and open trade to sustain local industries and critical material supply chains.