ALBAWABA- India is preparing to implement a 12% temporary tariff on steel imports, a bold move that could have significant implications for the global steel market.
The tariff, designed to curb a surge in cheap imports from China and other countries, is expected to take effect soon, according to sources familiar with the matter reported to Reuters.
This decision comes amid rising concerns over the influx of inexpensive foreign steel, particularly from China.
In a broader geopolitical context, US Vice President JD Vance’s visit to India has fueled speculation that the move could signal a strategic alignment between India and the United States, both of which share similar concerns about China’s economic and trade practices.
In response, China has issued a stern warning, stating that it will retaliate against nations cooperating with the U.S. on tariffs in ways that undermine Beijing’s interests.
The Chinese Ministry of Commerce emphasized, "China firmly opposes any party reaching a deal at the expense of China’s interests. If this happens, China will not accept it and will resolutely take reciprocal countermeasures."
India, the world's second-largest crude steel producer, has been a net importer of finished steel for the second consecutive year, with imports reaching a nine-year high of 9.5 million metric tons in the 2024/25 fiscal year, according to government data.
This decision is expected to reshape the dynamics of the steel industry in the region and further intensify tensions between major global players.
