The Indian government proposed a three-year import tariff ranging from 11% to 12% on certain specified steel products. If this proposal gets approved, the steel products tariff will start at 12% in the first year, drop to 11.5% in the second year, and additionally reduce to 11% in the third year. The Directorate General of Trade Remedies (DGTR) issued a notification on August 16.
This recommendation would reduce the growing shipments from major steel producers like China. Their excess supply has disrupted the entire market.
The Authority concludes that there is a recent, sudden, sharp, and significant increase in imports,” the notification said, adding that this could cause serious injury to the domestic steel sector.
The DGTR also said that due to 50% tariffs on steel imports into the U.S., coupled with similar measures by other countries, a bulk of steel volumes are lying with manufacturers across the world.
Thus, the safeguard duty should consider not only the serious injury caused by the domestic industry but also the serious injury threat that will most likely occur in the future.
The Indian Government imposed a 12% temporary tariff for 200 days in April, following initial findings.
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The Japanese Steel Group announced on Monday that it has requested early action to prevent the avoidance of anti-dumping tariffs. These tariffs are meant to protect their domestic industry from unfair imports.
Donald Trump’s import tax on steel led to trade tensions with China. This resulted in countries like South Korea and Vietnam putting extra fees on imported steel to prevent dumping.
