India considers imposing a temporary 25% tariff to curb the influx of cheaper Chinese steel imports.

India is likely to impose a “safeguard duty” or temporary tax of up to 25% on steel imports to curb cheap imports from China, according to industry and government sources. The decision was made following a meeting chaired by Commerce Minister Piyush Goyal, where small industries dropped their opposition after being assured they would not be hit by higher steel prices. Small manufacturers, who consume around 1 million metric tons of steel annually, are expected to benefit from the arrangement, with prices around 20% lower than market rates. Major steel producers such as JSW Steel, Tata Steel, and ArcelorMittal Nippon Steel India have raised concerns about cheaper imports from China. The import of steel has surged to a record high in the current financial year, with India becoming a net importer of the alloy. The government is investigating whether cheap imports from China have harmed domestic steelmakers and will impose the temporary tax once the investigation is complete.