India imposes a 12% tariff to prevent the import of Chinese steel.

India, the world's second-largest crude steel producer, on Monday imposed a temporary 12 percent duty on some steel products imported from China.

The duty, known locally as a "safeguard duty," will remain in effect for 200 days unless the government withdraws or modifies it sooner.

The influx of cheap Chinese steel has forced some Indian steel mills to cut production and lay off workers in recent years. India and other countries are considering such measures to protect their domestic industries.

The duty will come into effect from Monday, India's finance ministry said in a government order. It is essentially a major trade policy move against Chinese imports, which came at a time when US President Donald Trump has been slapping massive tariffs on various countries in April and has started a bitter trade war with China.

But concerns about India's steel imports date back even before these recent developments. The ongoing investigation began last December.

Indian Steel Minister H. D. “This step will protect domestic steelmakers and ensure fair competition in the market,” Kumaraswamy said in a statement.

He added, “Small and medium industries in particular are under immense pressure due to cheap imports. This duty will provide immediate relief to them.”

China was India’s second largest steel exporter after South Korea in the 2024-25 fiscal year. The duty was imposed primarily to curb those imports.

“This decision was expected. Now we will see how it protects domestic industries and their profits and limits cheap imports,” said an executive at a leading Indian steel mill.

“The impact of Chinese imports is being felt globally, directly or indirectly,” he added.

According to preliminary government data, India was a net importer of refined steel for the second consecutive year in the 2024-25 fiscal year. Imports rose to 9.5 million metric tonnes during the period, the highest in nine years.

India's top steelmakers, including JSW Steel, Tata Steel, Steel Authority of India and ArcelorMittal Nippon Steel India, have repeatedly expressed concerns about imports and urged the government to take regulatory action.