India’s Minister of Steel announced on Tuesday (February 11) that India may impose a temporary tariff of 15% to 25% on steel products from China in the next six months to counter China’s unfair competition. Experts in the industry say that the steel and aluminum tariffs imposed by the United States on Monday have prompted exporters to turn their attention to India.
Minister of Steel in India, H.D. Kumaraswamy, stated in an interview with Reuters on Tuesday evening, “The increase in steel imports from China is often driven by unfair trade practices, posing a severe challenge to Indian manufacturers.”
Kumaraswamy added, “Based on the ongoing investigation, the tariff rate for protective duties will range from 15% to 25% to prevent unfair competition and ensure a level playing field.”
According to a report by Reuters in December 2024, due to the surge in imports, some small steel mills in India have had to reduce production capacity and consider layoffs.
President Trump signed an executive order on Monday (February 10) imposing a 25% tariff on imported steel and aluminum starting from March 12.
Analysts believe that this move is aimed at preventing cheap steel and aluminum products from China and other countries from entering the US through third countries. According to Nikkei Asia, this is President Trump fulfilling one of his campaign promises to stop cheap products from China and elsewhere, including those imported through third countries, from flooding into the US.
Industry experts suggest that a significant increase in steel import tariffs in the US may lead exporters to shift their focus to India.
Data shows that India’s finished steel imports from April to October 2024 reached 5.7 million metric tons, marking a seven-year high. Among them, China holds a significant share, exporting 1.7 million metric tons of steel to India during this period, a 35.4% increase compared to the previous period.
In November 2024, the Turkish government officially announced a tariff of around 15% to 43% on steel products from China.
American economist David Huang previously told Epoch Times that for over two decades, the steel consumption in the real estate sector has accounted for over 40%, making the shrinkage of the Chinese real estate industry undoubtedly the direct reason for the collapse of the entire steel industry.