Union Minister for Heavy Industries and Steel, H. D. Kumaraswamy, has praised the Finance Ministry’s decision to introduce a 12% safeguard duty on imported non-alloy and alloy steel flat products. He said the step will strengthen the local steel industry and promote fair competition. The Minister took to the social media platform X (formerly Twitter) and said, “I welcome the 12% safeguard duty on imported steel flat products. This will protect Indian manufacturers, ensure fair competition, and boost domestic industry.”

The government introduced a temporary tariff late Monday to address a sudden spike in steel imports that could threaten local manufacturers. The new duty takes effect immediately and will last 200 days, unless changed or withdrawn sooner. A notice from the Finance Ministry explained that the safeguard duty targets steel imports priced below specific thresholds, ranging from USD 675 to USD 964 per tonne, across five types of flat steel products. These contain Hot Rolled Coils, Sheets and Plates; Hot Rolled Plate Mill Plates; Cold Rolled Coils and Sheets; Metallic Coated Steel Coils and Sheets; and Colour Coated Coils and Sheets, regardless of whether they are profiled.

Steel shipments brought into the country at or above certain CIF (Cost, Insurance, Freight) prices won’t face the extra duty. This move mirrors a recent U.S. decision to apply a flat 25% tariff on steel imports from all nations. India’s safeguard duty is mainly aimed at curbing dumping, particularly from countries like China, which is India’s second-largest steel supplier after South Korea.

Back in December 2024, the Directorate General of Trade Remedies (DGTR) began looking into the surge in imports of steel flat products, which are widely used in industries like automotive, construction, and manufacturing.

Major steel producers in the country pushed for protectionist policies, arguing that rising imports hurt their market share. However, industries that rely on steel, particularly MSME exporters in engineering, voiced worries that such duties would raise raw material prices and hurt their ability to compete internationally. Safeguard duties are meant to be short-term trade tools to protect local industries from a sudden spike in imports that could put them at risk.