Posted on 11 Mar 2025
Amid the ongoing trade war with the US, which has been ramping up and announcing tariffs against China, Canada, and Mexico, India’s Directorate General of Trade Remedies (DGTR) has recommended imposing up to 15% safeguard duty on select steel imports to counter a surge in shipments, particularly from China, that have turned the country into a net importer over the past 12-18 months.
The DGTR is the trade remedy body under the Ministry of Commerce and Industry,. It is responsible for investigating and recommending measures like anti-dumping duties, countervailing duties, and safeguard duties to protect domestic industries from unfair trade practices or sudden surges in imports.
A safeguard duty is a temporary tariff imposed to shield domestic industries from a sudden increase in imports, regardless of whether unfair trade practices are involved.
"The investigation is almost complete, and its findings are expected to be published within the week. The Commerce Ministry will take a final call on implementing the safeguard duty," said the first person.
According to people familiar with the matter, the duty will not be applicable beyond certain price thresholds.
For instance, hot-rolled coils priced at or above $650–675 per tonne, hot-rolled plates around $700 per tonne, coated steel at about $860–865 per tonne, and colour-coated steel at about $964 per tonne will not attract the additional levy, said one of the two people mentioned above.
This holds significance as the Steel Ministry had initially pushed for a higher safeguard duty of 20-25%, citing the need to curb rising imports, particularly from countries with which India has free trade agreements (FTAs), such as Japan, South Korea, and China.
Source:Mint
