India's Blow to China's Earnings: Tariff Imposed on Steel Imports, These Stocks in Focus!

The government has imposed a tariff on steel imports from China. This move could benefit domestic companies. Evidently, this could also impact their stocks.

India slaps duty on Chinese steel: China has been making substantial profits by dumping its cheap goods in India. Now, the Indian government has dealt a major blow to this income of China. The government has imposed a tariff on steel imports from China for three years. It is believed that this will cause a significant loss to China, while domestic steel companies will benefit.

How the Tariff Will Be Applied

The government has decided to impose an 11-12% tariff on certain steel products from China for the next three years. The tariff will be 12% in the first year, decreasing to 11.5% in the second year, and 11% in the third year. The government states that steel imports have increased recently, putting pressure on local steel manufacturers. Keeping this in mind, a tariff is being imposed on steel products from China for three years. The Centre believes that the inferior quality of cheap goods coming from abroad is causing problems for India, and domestic companies are also suffering losses.

Other Countries Also Named

China has consistently been exporting its cheap goods to the Indian market. Due to their low prices, Chinese goods are in high demand. However, local businesses have to bear the brunt of this. The same is happening in the case of steel. Therefore, the government has imposed a duty on Chinese imports for three years. According to a notification published in the government gazette, duty will be levied on supplies from Nepal and Vietnam, in addition to China. It is noteworthy that in April 2025, the government had imposed a 12% tariff on all imports from abroad for 200 days, the duration of which ended in November.

Volume of Imports from China

This move by the Indian government is considered a major setback for China. Data from Trading Economics indicates that China exports a significant volume of its steel products to India. In 2024, India's iron and steel imports from China were around $127 billion. This included a large proportion of flat-rolled stainless steel products.

How This Will Be Beneficial

The imposition of tariffs on steel imports from China is expected to benefit Indian companies. The business of major steel sector companies like Tata Steel, Jindal Steel, and JSW Steel may see a surge. Consequently, their performance in the stock market is also anticipated to improve. Tata Steel's share is currently trading above ₹178. Jindal Steel is priced at ₹1049, and JSW Steel's current price is over ₹1,163. Apart from these, the share prices of other listed steel companies in the market may also be affected. In this scenario, the government's decision could prove beneficial for Indian steel companies as well as their investors.