India levied a three-year safeguard duty of 11% to 12% on select steel imports on Tuesday. The move aimed to curb low-priced shipments and protect local mills. Steel shares rose on Wednesday this week as investors priced in tighter import competition.
The finance ministry notification sets the safeguard duty at 12% in year one. It then steps down to 11.5% in year two and 11% in year three. The levy covers non-alloy and alloy flat steel products. It applies to headings 7208, 7209, 7210, 7211, 7212, 7225, and 7226.
Covered items include hot-rolled coils, sheets, and plates, plus plate mill products. The scope also includes cold-rolled coils and coated steel, including galvanneal. It also includes color-coated coils and sheets.
The notification ties the duty to the Customs Tariff Act schedule, so classification will drive liability. Firms may seek advance rulings to reduce disputes.
The measure excludes several developing-country sources under the safeguard rules. However, imports from China, Vietnam, and Nepal remain within scope.
The duty also leaves out specialty steel, including stainless steel, so those grades keep their earlier tariff treatment. Importers will need to map each shipment to the listed headings and product descriptions.
The Directorate General of Trade Remedies reviewed the import trend and flagged a sharp rise in inbound volumes. It said the jump risked serious injury to domestic producers in the covered categories. Consequently, it recommended a three-year remedy to address the surge and support fair competition in the domestic market.
The government had already used a short-term safeguard tool earlier in 2025. In April, it applied a temporary 12% duty for 200 days on the same group of products. Policymakers also pushed quality controls and standards checks to limit sub-standard material in the supply chain.
Many manufacturers use these flat grades in autos, appliances, and construction. The duty increases landed import costs for covered items. Buyers may shift sourcing or renegotiate contracts over coming quarters.
Domestic steel stocks reacted quickly after the latest notification. Tata Steel gained about 3.5% in Wednesday trade, while JSW Steel added roughly 2.7%.
Other major names also advanced, with several stocks rising between 2% and 4%. Meanwhile, the Nifty 50 index edged up about 0.3%, as the tariff update supported the sector’s near-term pricing outlook.
Global trade policy also shaped the backdrop for the decision. U.S. steel tariffs under President Donald Trump increased trade friction and redirected some flows in Asia. South Korea and Vietnam also raised trade defenses earlier this year through anti-dumping actions.
India set a duty schedule that tapers over time, and it keeps pressure on low-priced import channels throughout.