India moved decisively on Tuesday to protect its steel sector, imposing a three-year import tariff of 11 to 12 percent on certain steel products as shipments from China continue to flood the market. The staggered tax, which starts at 12 percent and gradually reduces, signals a long-term defense after months of temporary safeguards.

The rate will be set at 12 percent in the first year, reduced to 11.5 percent in the second year, and reduced to 11 percent in the third year. The decision comes as India, the world’s second largest producer of crude steel, faces a surge in low-priced imports from China, heightening anti-dumping concerns and squeezing domestic producers.

Published in the Official Government Gazette, the measure excludes imports from certain developing countries. However, China, Vietnam and Nepal will be subject to the duty. Specialty steel products, including stainless steel, have remained out of reach.

The commerce ministry has repeatedly said it does not want the domestic steel industry to suffer damage from cheap imports and inferior products. Based on those concerns, the Directorate General of Trade Resources recommended the three-year levy after finding a “recent, sudden, sharp and significant increase in imports … causing and threatening to cause serious injury to the domestic industry,” the order said.

The move follows an earlier interim measure. In April 2025, the government imposed a temporary 12 percent tariff for 200 days on all steel imports from foreign nations. That safeguard expired in November 2025, reviving industry calls for longer protection.

Industry bodies had pointed out the risk long before the new rate. In August 2025, the Stainless Steel Development Association of India submitted a petition to the DGTR, urging the government to impose anti-dumping duties on cheap steel imports that were undercutting local manufacturers.

India’s action also reflects broader global trade tensions over Chinese steel exports. After Donald Trump imposed import tariffs on steel, Chinese shipments were diverted to other markets. Several countries have since tightened trade defenses, with South Korea and Vietnam earlier this year imposing anti-dumping duties on Chinese steel products to counter what the governments describe as low-priced, market-distorting exports.

Holder options

1. Steel imports face 11-12% duties as India moves to curb China’s price boost

2. Three-year steel tariff unveiled as India tightens shield against cheap Chinese imports

3. India implements phased steel tax to curb surge in low-priced Chinese shipments

4. 11-12% steel import tariff signals India’s longest fight against dumping pressures

5. After temporary curbs, India implements three-year steel duty of 11-12% amid surge in Chinese imports