Maximum 200 days. India is preparing to shake most of the countries of the world. The eyes of the whole world are on tariff war between America, China, Canada, Mexico and European countries. On the other hand, India is also preparing to surprise everyone by joining this war. India will also disturb many countries with the same attack. India is currently considering increasing tariffs on steel products. This increase will be temporary. The government is considering increasing the tariff for 200 days. This decision can be a major setback for China, South Korea and Japan. India imports more than 70 percent of its requirement from these countries.
Why does this decision have to be taken?
The Department of Commerce, Directorate General of Trade Treatment (DGTR) has recommended a temporary security duty of 12 percent for 200 days on some steel products for the purpose of protecting domestic steel imports. The DGTR suddenly began a sudden increase in the investigation of import of other alloys and metal steel products used in various industries including fabrication, pipe manufacturing, capital goods, autos, tractors, bicycles and electrical panels.
For this reason, an inquiry was demanded.
The Indian Steel Association launched this investigation following the complaint of its members. Arcelor Mittal Nippon Steel India, AMMS Khopli, JSW Steel, JSW Steel Coated Products, Bhushan Power and Steel, Jindal Steel and Power and Steel Authority of India Limited are members of the organization. The investigation conducted by the Directorate found prima facie that there has been a sudden, acute and significant increase in imports of these products in India, causing serious damage to domestic industry/manufacturers.
12 percent tariff recommendation
The DGT, in its notification of March 18, said that such serious situations have arisen, where there will be a loss in implementation of temporary security measures and it would be difficult to compensate. Therefore, temporary safety measures need to be implemented immediately.
According to information received from the industry, this situation has arisen due to decrease in demand in China, Japan and South Korea. The import of these products increased from 22.93 tonnes during 2021-22 to 66.12 tonnes during 2021-24. Imports have increased due to all countries including China, Japan, Korea and Vietnam. The notification states that all these aim is to protect India’s domestic industry from increasing imports.
