India plans up to 25% tax on steel imports from China

Investing.com -- India is planning to impose a temporary tax, known as a "safeguard duty", of up to 25% on steel imports. The move is aimed at curbing inexpensive imports from China, the world's top steel producer, according to industry and government sources.

A proposal for the tax received widespread support at a meeting led by commerce minister Piyush Goyal on Tuesday. Small industries initially opposed the plan, but dropped their resistance after being assured that they would not be affected by potential increases in steel prices.

An industry official who was present at the meeting stated that the safeguard duty would likely be implemented following an investigation. The probe is expected to be completed within a month. "To address concerns of small manufacturers, large steelmakers will supply them steel at reduced prices," the official added.

The Directorate General of Trade Remedies in India is currently investigating whether inexpensive imports from China have negatively impacted domestic steelmakers. The government is expected to enforce the temporary tax once the investigation concludes.

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Source: Investing.com