Indian Government: Considering imposing a so-called "safeguard tax" of 15% to 25% on China!

According to a report released by Reuters on February 12, Indian Steel Minister H.D. Kumaraswamy revealed that in view of the "significant threat" posed by Chinese steel imports to Indian domestic producers, India may implement a temporary tax measure of between 15% and 25% on steel products originating from China in the next six months. The report pointed out that Kumaraswamy emphasized in an exclusive interview with Reuters on the 12th that the surge in Chinese steel exports "is often accompanied by unfair trade practices", which poses a "significant threat" to Indian steel producers. He further stated that in order to curb "unfair competition" and build a "fairer competitive environment", the Indian government is planning to impose this so-called "safeguard tax". Kumaraswamy also mentioned that the tax rate was set based on an in-depth investigation launched by the Indian government in December last year. Reuters pointed out that once this tax increase policy is implemented, it may be effective for up to two years. In the 2023/24 fiscal year (ending March last year), India became a net importer of finished steel for the first time. During this period, India imported nearly 2.7 million tons of steel from China, accounting for one-third of India's total steel imports, a significant increase of 91% year-on-year. It is worth noting that from April to December 2024, India's imports of finished steel from China also set a new record.