According to a report by the Global Trade Research Initiative (GTRI), the Directorate General of Trade Remedies (DGTR) of India has proposed a three-year safeguard tariff on steel imports, which would seriously harm the domestic automobile industry, as it would lead to higher raw material costs.

In April 2025, the Indian government had already imposed a provisional safeguard tariff of 12% on steel imports for 200 days. GTRI pointed out that several automobile manufacturers have raised objections to the safeguard tariff, arguing that it would increase production costs and undermine export competitiveness. It also accused the DGTR of sacrificing the interests of downstream industries in order to protect a small number of large steel manufacturers.