India has slapped a 2.5 percentage points rise in tariffs on steel imports from China and will have an adverse effect on the Chinese steel industry, it is claimed.
Chinese steel accounts for 36% of India’s total imports, which increased year-on-year by 62% in April 2015 to 190kt (metric tons).
China and India have not signed a comprehensive economic partnership agreement (CEPA) and this is why Chinese exporters will have to pay a 10% tariff.
While the tariff won’t have an immediate effect on China’s exports of steel due to lower export prices, it will take hold and China’s export costs will rise.
Source: China Metals.