India’s Tariff Plan to Protect Local Steel Industry
India recently announced that it will impose tariffs ranging from 12% to 30% on specific steel products imported from China and Vietnam. This decision, as outlined by the Indian finance ministry, is aimed at protecting the domestic steel industry. The focus of these tariffs is on welded stainless steel pipes and tubes. China, the world’s largest producer of steel, holds significant dominance. These tariffs will be in effect for the next five years, marking a significant shift in India’s trade policies.
Tensions Between India and China
India and China have escalated tensions between since their military clash at the Himalayan border in 2020. In response to this, India has increased its scrutiny of Chinese investments and suspended major projects involving Chinese entities. Although this might seem like a hostile move, India’s foreign minister, Subrahmanyam Jaishankar, clarified that India remains open to doing business with China. He emphasized, however, that the conditions under which trade with China takes place will be more carefully regulated moving forward.
Anti-Dumping Investigation and Vietnam’s Role
India’s decision also comes on the heels of a broader anti-dumping investigation initiated in August, targeting certain steel imports from Vietnam. As India navigates its trade relationships, China and Vietnam have been strengthening their ties. Last month, Chinese President Xi Jinping met with Vietnam’s leader, To Lam, in Beijing. They discussed deepening their trade and investment partnerships. Despite occasional disagreements, particularly over boundaries in the South China Sea, both countries are keen to maintain a strong economic relationship.
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