After the U.S. raised import duties on Chinese goods to 125% on Wednesday, a sense of urgency has been gained for preventive measures as the tariff battle between the two escalates. This is a few hours after China said it would raise U.S. goods tariffs to 84%.
Chinese manufacturers are locked in the U.S. market and may dump goods in India at predatory prices, fearing Indian policymakers.
“There is a threat we are paying close attention to the situation,” one official said. “We are looking for ways to avoid circumvention.”
U.S. President Donald Trump said late on Wednesday that he had suspended tariffs in most countries for 90 days. He announced mutual tariffs on April 2 for most countries, including India.
Usually, anti-dumping measures are taken after a detailed investigation of the affected party’s complaint. The investigation determined whether the dumping had occurred and the domestic industry was damaged, and the process could take 18 months. However, during the investigation, temporary anti-dumping obligations can be imposed as temporary measures for up to six months. “In some cases, temporary anti-dumping obligations can be imposed, but not all,” said a trade expert.
In addition to such cessation measures, the General Administration of Trade Remedies (DGTR) can also begin investigations into so-called dumping.
In 2023, DGTR began such inquiries on Chinese roller chains, glass mirrors and fasteners to protect micro, small and medium-sized enterprises (MSMES) from cheap imports.
Such cases begin when the domestic industry does not understand the process involved, but must provide data to prove the harm to the government.
Another person who is aware of this development said: “There is a discussion that India should not wait for the harm to happen.”
India imported $95 billion worth of USD from China from April to January 1, from January 25. DGTR conducted 43 anti-dumping reviews in 2024, with 34 opposing China. The government also resets products with minimum import prices (MIP). This is a temporary measure to provide domestic industries with protection from predatory pricing for imports. Imports at lower than this price are not allowed to provide protection to domestic manufacturers. The person cited above said: “Both safeguards and MIP-ALL measures are under investigation.”
Safeguards are used when the import of products unexpectedly rises and threatens to cause serious harm to domestic producers.
Unlike anti-dumping targeting specific countries, the security obligation applies to all and gives domestic producers a period of elegantness to improve competitiveness.
Last month, DGTR, while recommending a temporary safeguard tax of 12% on steel products, said the “critical environment” of delays could harm domestic industries.
