The Indian government is considering imposing an 11-12% tariff to curb cheap steel imports from China. This move is expected to benefit domestic steel companies and has already led to a surge in metal sector stocks.
Tariff Update: The Indian government is seriously considering imposing tariffs on certain steel products. The primary objective is to curb the increasing influx of cheap steel imports from China into the Indian market. According to a Reuters report, this import duty is currently under consideration. The DGTR (Directorate General of Trade Remedies) had recommended imposing an import duty of 11% to 12% on some steel products for a period of three years in August 2025.
Temporary Tariff Period Ends
The central government had imposed a 12% temporary tariff on all steel imports from foreign countries for 200 days in April 2025, which expired in November 2025. The aim of this measure was to protect domestic steel manufacturers from the pressure of cheap imports from China and other countries. Experts suggest that cheap steel from China is escalating anti-dumping threats in India's steel market and proving challenging for the domestic industry.
Imports and Market Situation
A person familiar with the development stated that steel exports from China have driven down the prices of steel products available in the Indian market, weakening the position of domestic manufacturers. In the first seven months of the 2025-26 fiscal year, India's total finished steel imports from foreign countries decreased by 34.1% on an annual basis.
Surge in Steel Stocks
News of tariffs on steel imports has led to a surge in metal sector stocks. The Nifty Metal Index climbed by up to 2%. Loyz Metals rose by more than 4%. Additionally, shares of SAIL, JSW Steel, Hind Copper, Nelco, and NMDC are also trading higher. Experts state that news of potential interest rate hikes in the US is also a contributing factor to the rally in steel stocks.
Potential Impact on India, China, and the US
If India implements the tariffs, cheap steel imports from China will be curbed, benefiting domestic steel companies and strengthening their competitive position. Meanwhile, it could impact steel exports from the US and other countries, especially those that export steel to India.
