Indian government expects significant reduction in steel imports from South Korea and Japan after imposing temporary tariffs

Indian government sources said steel imports from China, South Korea and Japan are expected to slow down after a temporary safeguard tariff of 12% was imposed on some steel products. ​The tariff, which takes effect on April 21, 2025 for 200 days, is aimed at countering the impact of a surge in imported steel on the country’s steel industry. ​India’s finished steel imports reached 9.5 million tons in the 2024/25 fiscal year, a nine-year high, making India a net importer of finished steel for the second consecutive year. ​The measure has been supported by major Indian steel companies and is expected to ease the operating pressure of domestic steel mills and stabilize employment. ​

In addition, steel companies in South Korea and Japan have expressed opposition to the tariff. ​The Japanese government and steel industry representatives have applied to the Indian government for an exemption from the tariff, highlighting the importance of Japanese steel products to the Indian market. ​

Against this backdrop, the Indian government has also revised its steel procurement policy, requiring all government departments to give priority to purchasing locally manufactured steel products to further protect the domestic steel industry. ​

The measures reflect India’s multi-pronged strategy to deal with the surge in steel imports and aim to support the development of its steel industry.