India to impose 12%-30% tariffs on steel imports from China, Vietnam

India is set to impose tariffs ranging from 12% to 30% on specific steel products imported from China and Vietnam, as per an order issued by the Indian finance ministry.

India will impose tariffs between 12% and 30% on certain steel products imported from China and Vietnam, according to an order by the Indian finance ministry. The tariffs, which target welded stainless steel pipes and tubes, will be in place for five years, aiming to protect and boost India’s local steel industry.

China, the world’s largest steel producer, has been a major exporter to India. However, relations between the two countries have been tense since a military clash in 2020 at their Himalayan border. In response, India has tightened scrutiny on Chinese investments and halted several major projects. Despite these tensions, Indian foreign minister Subrahmanyam Jaishankar stated that India remains open to business with China but is cautious about which sectors and terms apply to these dealings.

The move also follows an anti-dumping investigation that India launched in August into steel imports from Vietnam. Vietnam’s growing trade relationship with China adds complexity, as both nations have shown interest in strengthening economic ties. Last month, Chinese President Xi Jinping met with Vietnam’s new leader To Lam in Beijing, despite occasional disputes over boundaries in the South China Sea.

These new tariffs are part of India’s broader strategy to protect its domestic industries while navigating its complex geopolitical relationships with China and Vietnam. By imposing these measures, New Delhi aims to strike a balance between safeguarding local businesses and maintaining economic ties, albeit with a more cautious approach toward trade from its two key Asian neighbors.