The Indian government has now taken a very strict stance to stop Chinese imports. The government has now taken a decision which may start a new war between India and China. In fact, India has imposed a 3-year tariff on Chinese steel. So that China cannot dump its products in India. Also, India’s trade deficit with China can be reduced. According to the order of the Finance Ministry, import duty of 11 percent to 12 percent has been imposed on some Chinese steel products for three years. The aim of the government is to curb cheap imports from China. This fee, known locally as ‘security fee’, will be applicable at the rate of 12 per cent in the first year, 11.5 per cent in the second year and 11 per cent in the third year.
Tariff will not be applicable on which steel
In the government order, imports from some developing countries have been exempted, although this duty will be applicable on China, Vietnam and Nepal. This fee will also not be applicable on special steel products like stainless steel. The Union Steel Ministry has repeatedly said that it wants to save the domestic steel industry from losses caused by cheap imports and substandard products. In April, the government had imposed a temporary duty of 12 percent for 200 days.
Who recommended the tariff?
The Directorate General of Trade Remedies has recommended the imposition of duties for three years “following the recent sudden, rapid and significant increase in imports… that is likely to cause or cause serious injury to the domestic industry,” the order said. The import duties imposed on steel by US President Donald Trump have triggered a wave of trade tensions over Chinese steel, leading several countries, including South Korea and Vietnam, to impose anti-dumping duties earlier this year.
Steel shares rise
After this order of the government, a rise of about 5 percent is being seen in the shares of JSW Steel. Whereas Tata Steel shares are trading with a rise of about two and a half percent. Jindal Steel shares are seen trading with a rise of about 4 percent. A rise of about 2.50 percent is being seen in the shares of Steel Authority of India. If we talk about the overall market, then at 11:10 am, a rise of 275 points is seen in the Sensex and it has reached 84,948.93 points.