India Tariff War / India also jumped into the tariff war, made a master plan of 200 days!

In just 200 days, India is ready to shake the world. The decision to impose a 12% temporary tariff on steel products will shock China, Japan and Korea. The government has taken this step to save the domestic industry, which is expected to strengthen the Indian market.

India Tariff War: There is turmoil in trade policies around the world, and India is now going to surprise everyone with its new move in this race. Amid the tariff war in the US, China, Canada, Mexico and Europe, India is also going to take a big decision to protect its domestic industry. The government has proposed to impose a 12% temporary tariff on steel products, which may shock China, South Korea and Japan.

Reason behind India's decision

India currently imports more than 70% of its steel from these countries, increasing pressure on domestic steel producing companies. The Directorate General of Trade Remedies (DGTR) has recommended imposing this temporary tariff for 200 days in view of the protection of the domestic market. This step has been taken to protect the domestic industry from cheap imports and promote self-reliance.

How was this decision needed?

Members of the Indian Steel Association had complained to the government that there has been a sudden increase in the import of steel products in recent years. Due to this, Indian manufacturers are suffering losses. According to the investigation of DGTR, 22.93 lakh tonnes of steel was imported in 2021-22, which increased to 66.12 lakh tonnes in 2023-24. This situation put the domestic industry in serious danger.

Recommendation and impact of 12% tariff

DGTR said in its notification issued on March 18 that it is necessary to impose temporary safeguard duty with immediate effect, so that the domestic industry can be saved. If this duty is implemented, major exporters like China, Japan and South Korea may suffer huge losses.

What next?

Now the final decision has to be taken by the Ministry of Finance. If this duty is implemented, it will not only strengthen Indian companies but can also change the international trade equations. This move of India is a big signal to the global market that now the country is going to give top priority to the protection of its domestic industries.