The global steel trade has been in turmoil since the United States imposed protective tariffs on steel imports in recent years. This move led to a redirection of steel exports to other markets, including India. Countries like the European Union, Canada, the UK, and Morocco have already responded with their own safeguard duties, ranging from 25% to 50%, to prevent their markets from being flooded with diverted shipments.
While the provisional duty aims to protect domestic producers, the DGTR acknowledged the potential impact on consumers. Steel is a critical input for numerous industries, and higher import costs could lead to increased prices for end products. However, the Authority concluded that the immediate need to safeguard the domestic industry outweighed these concerns.
According to Ajay Srivastava, founder, Global Trade Research Initiate, the proposed safeguard duty would raise steel prices, adversely affecting downstream industries such as automotive, infrastructure, and renewable energy.
“Specialised steel requirements remain unmet domestically due to technological and quality limitations, making imports essential. An estimated 10% increase in steel demand in 2025 contradicts claims that the industry is in distress and requires protectionist measures. The duty contradicts India’s “Make in India” initiative by raising costs for local manufacturers dependent on imported raw materials,” says Srivastava.