Safeguard Duty on Steel: DGTR’s 12% Recommendation
Why in the news
The Directorate General of Trade Remedies (DGTR) proposed a provisional safeguard duty to shield Indian steel makers from a flood of cheap imports.
Key facts
- Proposed: 12% safeguard duty for 200 days on steel products.
- Imports of finished steel from China, South Korea, Vietnam and Japan alarmed authorities.
- Trigger: trade diversion after the US imposed a 25% tariff on steel and aluminium from 12 March.
- DGTR says immediate provisional measures are needed to avoid irreparable damage.
- Since 2018 the EU, South Africa, Turkey, Vietnam and Malaysia have also protected their markets.
| Product | Measure |
|---|---|
| Alloy and non-alloy steel flat products | 12% safeguard duty for 200 days (preliminary finding, March 2025) |
| Low-ash metallurgical coke | Quantitative restrictions, 1 January to 30 June 2025 |
| Ferromolybdenum | Two-year safeguard duty announced May 2023; South Korea faced 5% (Oct 2023-Oct 2024), then 3.75% |
Economic implications
- Higher raw material costs for MSMEs and steel-using industries, even as global prices are expected to soften.
- Metal stocks rose: Nifty Metal up 1.67% to 9,185.20; Hindustan Zinc up 9.48% intraday.
Exam angle
- DGTR recommends; Department of Revenue (Ministry of Finance) decides.
- Terms: safeguard duty, trade diversion, quantitative restrictions.