India may impose 3-year tariff on top steel producers, China to feel impact

The Indian government may impose a three-year import tariff of 11–12 per cent on some selected steel products, if it heeds to a communique by its Directorate General of Trade Remedies (DGTR) on August 16.

The proposed tariff on steel imports would begin at 12% in the first year, reduce to 11.5% in the second, and further drop to 11% in the third, Reuters reported.

The move would curb rising shipments from top steel producers like China, whose oversupply has disrupted global markets.

"The Authority concludes that there is a recent, sudden, sharp and significant increase in imports," the DGTR notification said, adding that this could cause serious injury to the domestic steel sector.

This latest recommendation follows a temporary 12% safeguard duty imposed by India in April for 200 days after preliminary findings showed a steep increase in steel imports. The final recommendation now formalises the case for longer-term protection.