Heavy Industries Minister backs 12 percent import tariff on Chinese steel

Minister HD Kumaraswamy said on Wednesday he would try to convince the Finance Ministry to raise duties on steel imports.

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26 Aug, 2025 12:21

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Minister of Heavy Industries HD Kumaraswamy on September 4 said he will push for higher tariffs on Chinese steel import and try to convince the Finance Ministry to raise import duty to over 12 percent from the current 7.5 percent.

Kumaraswamy said the move is in the interest of the steel industry as higher tariffs on Chinese imports will protect India's market.

Shares of major steel producers - JSW Steel and Tata Steel - were off lows in an otherwise session of trading on Dalal Street.

Inventories of major construction raw materials are piling up in China as economic activity remains weak, leading to unsold surplus of commodities such as steel. The steel industry in China has been badly hit by the crisis in the real estate sector as construction demand has tapered off, resulting in iron ore inventories rising to year high at Chinese ports.

China is the most dominant player in the world steel market but has been facing weak demand since 2020 - exacerbated by the property crisis - sending prices to multi-year lows. This has also resulted in intensive competition for buyers of Chinese steel.

The chairman of one of China's biggest steel producers - Baowu Steel - has on record said that the crisis will likely be longer and “more difficult to endure than expected.”

Now, China’s steel exports is expected to touch an 8-year high, according to a report by FT.

India's steel makers too have raised these concerns in recent past. JSW Group managing director Sajjan Jindal said in July that rising Chinese imports were affecting margins of domestic steelmakers. "Several countries have raised barriers against steel imports, and the Indian steel industry is engaged with the government to ensure a level playing field."

JSPL chairman Naveen Jindal has however said that a 10-12 percent duty on steel imports will not be enough to fight the ‘predatory’ dumping by China, as quoted by CNBC-TV18.

JSW Steel CEO too said that they are in discussion with the government to seek the introduction of measures to restrict steel imports from China and FTA (free trade agreement) countries.

The US steel industry too has been struggling with weak prices, due to over-supply of Chinese steel and anticipation of rising domestic capacity in America. An imminent Fed rate cut at the FOMC meeting scheduled mid-September is expected to improve business prospects of industries that use steel as raw material, and may help improve demand.