Lok Sabha Question No. 1871 (UNSTARRED), answered on 2025-03-11
Subject: Impact of US Tariffs
Ministry: STEEL
Asked by: Shri Anto Antony

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA

## UNSTARRED QUESTION NO. 1871 FOR ANSWER ON 11.03.2025

## IMPACT OF US TARIFFS

1871. SHRI ANTO ANTONY:

Will the Minister of STEEL be pleased to state:

- (a) the steps taken to protect Indian steel and aluminium producers from the impact of US tariffs;
- (b)  the  manner  in  which  the  Government  addressing  concerns  about  increased dumping of steel from other countries in India; and
- (c) the policy measures are being considered to safeguard small and medium steel manufacturers?

## ANSWER

THE MINISTER OF STATE IN THE          (SHRI BHUPATHIRAJU SRINIVASA VARMA) MINISTRY OF STEEL

(a)to(c): USA has announced imposition of 25% tariff on Steel and Aluminium products on most favoured nation ( MFN ) basis from 12 th  March 2025. The Government of India continues  to  engage  with  the  US  Government  to  achieve  enhancement  and broadening of bilateral trade ties in a mutually beneficial and fair manner.

Steel  is  a  deregulated  sector  and  the  government  acts  as  a  facilitator  by creating a conducive policy environment for the development of steel sector in the country.  Directorate  General  of  Trade  Remedies  (DGTR)  conducts  anti-dumping investigations, under the Customs Tariff Act, 1975 and the rules made thereunder, on the basis of a duly substantiated application filed by the domestic industry alleging dumping of goods into the country causing injury to the domestic industry. The basic intent of anti-dumping measures is to eliminate injury caused to the domestic industry by  the  unfair  trade  practice  of  dumping  and  to  create  a  level  playing  field  for  the domestic industry.

To address concerns regarding increased dumping of steel from other countries in India, Anti Dumping Duty (ADD) measures pertaining to some steel products like seamless tubes, pipes and hollow profiles of iron, alloy, or non-alloy steel (other than cast iron and stainless steel) (from China PR), electro-galvanized steel (from Korea RP, Japan, Singapore), stainless-steel seamless tubes and pipes (from China PR), welded stainless steel pipes and tubes (from Vietnam and Thailand) are currently in place.

The Government has taken the following steps to safeguard the domestic steel Manufacturers and to strengthen competitiveness of India's steel industry:-

- (i) Countervailing Duty (CVD) is in place for Welded Stainless Steel Pipes and Tubes from China and Vietnam.
- (ii) In  the  Union Budget 2024-25, following measures were taken to support domestic manufacturers and boost domestic steel manufacturing:-
- a.  Basic Customs Duty (BCD) has been reduced from 2.5% to Nil on FerroNickel and Molybdenum ores and concentrates which are raw materials for steel industry.
- b.  BCD exemption on Ferrous Scrap has been continued upto 31.03.2026.
- c.  The exemption on specified raw material for manufacture of Cold Rolled Grain  Oriented  (CRGO)  steel  has  been  continued  up  to  31.3.2026. Further, the exemption has also been extended to such specified raw materials for manufacture of CRGO Steel falling under tariff item 7226 11.00.
- (iii) Domestically  Manufactured  Iron  &  Steel  Products  (DMI&SP)  Policy  for promoting 'Made in India' steel for Government procurement.
- (iv) Production Linked Incentive (PLI) Scheme for Specialty Steel to promote the manufacturing of 'Specialty Steel' within the country and reduce imports by  attracting  capital  investments.  The  anticipated  additional  investment under  the  PLI  Scheme  for  Specialty  Steel  is  Rs.  27,106  crores  with downstream capacity creation of around 24 million tonnes (MT) for specialty steel.
- (v) Introduction of Steel Quality Control Order thereby banning sub-standard/ defective steel products in domestic market as well as imports to ensure the availability of quality steel to the industry, users and public at large. As per the order, it ensured that only quality steels conforming to the relevant BIS standards  is  make  available  to  the  end  users.  As  on  date,  151  Indian Standards stands notified under the Quality Control Order covering carbon steel, alloy steel and stainless steel.

Government is implementing various Schemes/ Programes for the promotion and development of MSMEs, which inter-alia includes, Micro and Small Enterprises Green Investment and Financing for Transformation Scheme (MSE-GIFT Scheme), Micro  and  Small  Enterprises  Scheme  for  Promotion  and  Investment  in  Circular Economy  (MSE-SPICE  Scheme),  MSME  Champions  Scheme,  Prime  Minister Employment  Generation  Programme  (PMEGP),  MSME  SAMADHAAN,  Micro  and Small Enterprises - Cluster Development Programme (MSE-CDP) etc.

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