According to a Reuters report on February 12, India’s Minister of Steel, H.D. Kumaraswamy, stated that due to the “severe challenges” posed by Chinese steel imports to domestic producers, India may impose a temporary tariff of 15% to 25% on Chinese steel products within the next six months.
In an interview with Reuters on February 12, Kumaraswamy emphasized that the growth of Chinese steel exports is often accompanied by unfair trade practices, which have put immense pressure on Indian steel manufacturers. To counteract this unfair competition and create a level playing field, the Indian government is considering the implementation of a “safeguard tax.”
He further explained that the tariff rates would be based on the findings of an investigation launched by the Indian government in December 2023. According to Reuters, once the tax measure is approved and implemented, it could remain in effect for up to two years.
Official data reveals that in the 2023/24 fiscal year (ending in March 2024), India became a net importer of finished steel, with steel imports from China reaching nearly 2.7 million metric tons, accounting for one-third of India’s total steel imports—a 91% year-on-year increase. Particularly between April and December 2024, India’s imports of finished steel from China reached an all-time high.
Trump’s 25% Steel and Aluminum Tariff Plan
Meanwhile, similar moves are being considered in the United States. On February 9 (local time), while aboard Air Force One en route to New Orleans to attend the Super Bowl, former U.S. President Donald Trump revealed his plan to announce a 25% tariff on all imported steel and aluminum on February 10 (local time). Trump also emphasized that foreign companies would be barred from acquiring American steel companies, although they would still be permitted to invest.
In fact, during his previous term, Trump had already imposed a 25% tariff on imported steel and a 10% tariff on imported aluminum, but later granted tariff exemptions and quotas to Canada, Mexico, and Brazil. Under President Joe Biden’s administration, these exemptions were further extended to the United Kingdom, Japan, and the European Union.
According to data from the U.S. government and the American Iron and Steel Institute, the largest sources of U.S. steel imports are Canada, Brazil, and Mexico, followed by South Korea and Vietnam. In terms of weight, Canada currently supplies nearly one-quarter of the steel imported by U.S. businesses, while Mexico accounts for approximately 12%. Additionally, Canada is the largest supplier of primary aluminum metal to the U.S., while Mexico is a major supplier of aluminum scrap and alloys.
Tariffs on Chinese Steel Could Rise to 60%
Notably, back in March 2018, Trump introduced Section 232 tariffs, imposing a 25% tariff on imported steel and a 10% tariff on imported aluminum, with North American Free Trade Agreement (NAFTA) partners Canada and Mexico receiving exemptions. However, in July 2024, under Section 301, Biden’s administration announced an additional 10% tariff on steel and aluminum products imported from Mexico that originated in China, effectively raising the total tariff on these products to 35%.
Under the new regulations, unless steel products are melted and cast in Mexico, Canada, or the United States, Mexican-origin steel will be subject to a 25% tariff. Similarly, if aluminum products imported from Mexico contain primary aluminum melted or cast in China, Russia, Belarus, or Iran, they will face a 10% tariff. The U.S. government implemented these measures to close loopholes that allowed countries like China to circumvent tariffs by routing steel and aluminum products through Mexico. Since these policies were enacted, China’s direct steel exports to the U.S. have plummeted from 3.5 million metric tons in 2018 to just 890,000 metric tons in 2024.
On February 10, Trump reaffirmed his plan to impose a 25% tariff on all steel and aluminum imports from every country, with the policy expected to take effect on March 12. This move could push tariffs on Chinese steel products up to 60%, marking a further escalation of trade barriers.
