India Levies Up to 12% Safeguard Duty on Select Steel Imports From China, Vietnam

India has imposed a safeguard duty of up to 12% on select steel imports from China, Vietnam and Nepal for a period of three years, seeking to protect domestic steelmakers from a sharp surge in low-priced imports that authorities say caused serious injury to the local industry.

The government confirmed the levy following an investigation by the Directorate General of Trade Remedies, which found that imports of alloy and non-alloy steel flat products had risen suddenly and sharply, hurting Indian manufacturers.

The safeguard duty will be imposed in a phased manner:

• 12% from April 2025 to April 2026

• 11.5% from April 2026 to April 2027

• 11% from April 2027 to April 2028

The final measure replaces a 12% provisional safeguard duty that was imposed in April this year for 200 days and expired in November 2025.

The duty applies to imports originating from People's Republic of China, Vietnam, and Nepal.

According to the DGTR, the surge in imports created a serious injury and threat to domestic steel producers. Cheaper foreign steel led to loss of market share for Indian manufacturers, pressured prices, and weakened capacity utilisation and profitability.

The investigation concluded that the injury was material and ongoing, with domestic producers unable to compete against underpriced imports. The safeguard duty, the government said, was necessary to stabilise the domestic steel industry and prevent further financial damage.

The duty is expected to provide immediate relief to domestic steel producers by insulating them from sudden import shocks and restoring pricing discipline.

Market data shows that Chinese hot-rolled coil (HRC) was being imported at a landed cost of around Rs 48,040 per tonne, compared with domestic HRC prices of approximately Rs 47,200 per tonne, making imports competitive even without tariff advantages.

Industry participants say the move will help:

• Prevent margin erosion and financial stress

• Restore fair competition against underpriced imports

• Support stable production planning and domestic pricing

With the 12% safeguard duty, the landed cost of Chinese HRC could rise sharply to about Rs 55,465 per tonne, significantly reducing the price gap and improving the competitiveness of Indian producers.