India Slaps Three-Year Safeguard Duty on Steel Imports to Curb Surge

India has imposed a three-year safeguard duty on select steel products in a bid to protect domestic manufacturers from a sudden surge in low-cost imports, particularly from China. The decision was formalised through a finance ministry notification published in the official gazette on December 30, 2025.

Under the measure, imports of specified steel products will attract a tariff of 12% in the first year, which will gradually taper to 11.5% in the second year and 11% in the third year. While the safeguard duty exempts certain developing countries, shipments from China, Vietnam and Nepal will be subject to the levy. Specialty steel products, including stainless steel, have been excluded from the scope of the duty.

The move follows a recommendation by the Directorate General of Trade Remedies (DGTR), which found a “recent, sudden, sharp and significant increase” in steel imports that was causing, or threatening to cause, serious injury to India’s domestic steel industry. Acting on these findings, the government opted for a longer-term protective measure after earlier imposing a temporary 12% tariff for 200 days in April.

The steel ministry has consistently maintained that unchecked imports of cheap and sub-standard steel could harm domestic producers, especially at a time when capacity utilisation and investment plans are under pressure. The safeguard duty is intended to give Indian manufacturers breathing space while maintaining fair competition.

Globally, steel trade has become increasingly contentious. The decision comes amid heightened trade frictions triggered by US tariffs on steel imports, which have redirected Chinese steel to other markets. Several countries, including South Korea and Vietnam, have already imposed anti-dumping duties on steel products this year to counter similar pressures.