The new tariff follows the expiry of a temporary 200-day duty imposed in April 2025. The government has now implemented a long-term, tapering duty structure to allow domestic producers time to adjust:
| Period | Safeguard Duty Rate (Ad Valorem) |
| Year 1: April 21, 2025 – April 20, 2026 | 12% |
| Year 2: April 21, 2026 – April 20, 2027 | 11.5% |
| Year 3: April 21, 2027 – April 20, 2028 | 11% |
Note: The duty will not be levied for the “gap period” between the expiry of the provisional duty (November 2025) and the publication of this final notification.
🔧 Products & Countries Under the Scanner
Impacted Steel Items
The duty specifically targets alloy and non-alloy steel flat products falling under tariff headings 7208, 7209, 7210, 7211, 7212, 7225, and 7226. These include:
- Hot Rolled (HR) coils, sheets, and plates.
- Cold Rolled (CR) coils and sheets.
- Metallic Coated steel (Galvanneal, Zinc, or Al-Zinc coated).
- Color Coated coils and sheets.
The “China Factor”
While the order spares most developing nations, it strictly applies to imports originating from China, Vietnam, and Nepal. Speciality products like stainless steel are currently exempted from this specific safeguard duty.
📈 Why the Government Intervened
The Directorate General of Trade Remedies (DGTR) investigation revealed critical “injury” to the Indian market:
- Market Share Loss: Domestic producers were losing ground to ultra-cheap Chinese shipments.
- Price Suppression: Landed costs of imports were significantly lower than domestic production costs.
- Global Context: With the US and EU tightening their own steel barriers, India had become a primary target for diverted Chinese steel “dumping.”
Impact on Metal Stocks
Following the notification, shares of leading Indian steel companies saw a positive uptick on the final trading day of 2025. Analysts believe the duty provides much-needed price support and will help stabilize margins for the 2026 fiscal year.