India has imposed a three-year import tariff of between 11% and 12% on some steel products, according to a finance ministry order, according to Reuters. According to the report, the levy, locally known as a safeguard duty, will be imposed at 12% in the first year followed by 11.5% in the second year and then 11% in the third year.
Steel import duty applies to China, Vietnam and Nepal
The measure excludes imports from certain developing countries, though China, Vietnam, and Nepal will be subject to the levy. It also will not apply to specialty steel products such as stainless steel.
The federal steel ministry has repeatedly said it does not want the domestic steel industry to face injury due to cheap imports and sub-standard products.
The government had earlier imposed a temporary 200-day tariff of 12% in April.
DGTR flags surge in steel imports
The Directorate General of Trade Remedies recommended the three-year duty 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, according to Reuters.
US President Donald Trump’s import tariffs on steel have fuelled a wave of trade friction over Chinese steel, with countries including South Korea and Vietnam imposing anti-dumping levies earlier this year.
According to an ANI report, the order by finance ministry stated, “The Central Government after considering the said findings of the Director General (Trade Remedies), hereby imposes on the subject goods falling under tariff headings 7208, 7209, 7210, 7211, 7212, 7225 and 7226 of the First Schedule to the Customs Tariff Act, when imported into India.”
Steel stocks jump up to 4%
Shares of India’s major steel companies jumped between 2% and 4% on Wednesday, a day after India imposed import tariffs on some steel products as the government aims to curb cheap shipments from China. Shares of India’s top steel makers Tata Steel and JSW Steel jumped 3.5% and 2.7%, respectively, topping the gainers on benchmark Nifty 50 index, which rose 0.3%.
With the input from Reuters