India has imposed a three-year import tariff on select steel products, effective December 30, 2025. This move is primarily aimed at curbing the inflow of low-priced steel, particularly from China, Vietnam, and Nepal. The tariff, structured as a safeguard duty, will be implemented in phases, starting at 12% in the first year, then decreasing to 11.5% in the second year, and finally settling at 11% in the third year.
The decision to impose this tariff follows concerns raised by domestic steel manufacturers regarding the surge of inexpensive steel imports, which they argue constitutes dumping and puts undue pressure on their businesses. The Ministry of Finance officially announced the order, emphasizing the need to protect the domestic steel industry from injury caused by these imports. The Directorate General of Trade Remedies (DGTR) supported the decision, stating that there has been a "recent, sudden, sharp, and significant increase in imports" that threatens the domestic industry.
While the tariff applies to imports from China, Vietnam, and Nepal, it excludes certain developing nations and specialized steel items like stainless steel. This measure comes after a temporary 12% tariff imposed in April 2025 for 200 days, which expired in November 2025.
The Indian Stainless Steel Development Association had previously voiced concerns about the issue and in August 2025, they formally requested the DGTR to impose anti-dumping duties on these imports.
This action by India occurs amidst a backdrop of global trade tensions concerning Chinese steel exports, partly triggered by the United States' imposition of import tariffs on steel. These measures by the U.S. led to a redirection of Chinese shipments towards other markets, which then prompted several countries, including South Korea and Vietnam, to implement stricter trade defenses.
According to Dhruv Goel, CEO of Big Mint, the tariff is expected to provide a cushion for domestic steelmakers by preventing a sharp fall in prices. It is important to note that the final duty will not be applied to imports made during the period between the expiration of the provisional duty and the publication of the gazette notification. Steel prices had previously fallen to multi-year lows in October before showing signs of recovery.
