Steel Prices: Relief to domestic companies like Tata Steel, SAIL, tariff to be imposed on import of steel from China-Vietnam

The Indian government has prepared a plan to impose heavy tariffs on steel being imported from countries like China and Vietnam. Domestic steel companies like Tata Steel and SAIL can benefit greatly from this preparation of the government.

Tariff may be up to 30 percent

Reuters has quoted a recent order of the Finance Ministry as saying that the Central Government has prepared to impose tariffs on some steel products being imported from China and Vietnam. The rate of tariff to be imposed on steel products is going to be from 12 percent to 30 percent. This step of the Indian government will make the import of related steel products expensive, which will benefit the domestic steel companies.

For this reason the government is taking steps

According to the report, the Finance Ministry has prepared a plan to impose tariff on some steel products to promote domestic companies and domestic steel industry and protect them from cheap imports. The steel products on which the government is preparing to impose heavy tariffs include stainless steel pipes and tubes coming from China and Vietnam. The tariffs are going to be imposed for the next five years.

Government had received complaint of dumping

In fact, the Indian government had received complaints that cheap steel products from some competing countries were being dumped in the domestic market, which had created problems for the domestic steel companies. After receiving the complaints, the Government of India started investigating the dumping cases. The investigation was started in August. Some steel products being imported from Vietnam were under investigation. Now news of preparations to impose tariffs on imports coming from China including Vietnam is also coming to the fore.

India’s trade relations with China

China is the world’s largest steel producing country. Trade relations between India and China have been tense for the last few years. The military and border dispute has had a major impact on the trade relations between the two countries. However, recently the Indian government has approved some FDI proposals of Chinese companies. On Tuesday itself, External Affairs Minister S Jaishankar had said that India has not stopped business with China.