India is moving to join the wave of protectionist measures in the steel sector, preparing plans to impose import tariffs one week after US President Donald Trump’s decision to impose 25% tariffs on steel and aluminum imports.

The Indian Ministry of Commerce has proposed a 12% duty on a wide range of imported steel products, as the global steel market faces turmoil with many countries taking protectionist measures to counter the influx of the metal into their markets, particularly from China, which produces one billion tons of steel annually.

The Indian Ministry of Commerce said that safeguard measures are used in “times of unfavorable and unexpected import surges that cause or threaten to cause permanent damage to the domestic industry,” according to the German news agency DPA.

India is the world’s second-largest steel producer and has joined many countries from Asia to Europe and Latin America in trying to adapt to President Trump’s decision to impose tariffs on US imports.

Meanwhile, China’s real estate crisis has led to a significant increase in its steel exports, contributing to a significant surplus in the global market amid weak global demand.

According to the preliminary decision issued after an investigation by the Indian Trade Commission, the proposed tariffs on Indian steel imports will be in place for 200 days, with a final decision to be issued after 30 days of consultation and a public hearing.

“The domestic steel market is experiencing a significant increase in new capacity, so there will now be some support from these tariffs,” said Shankhadeep Mukherjee, senior analyst at CRU Group.

On the back of this news, shares of Indian steel companies rose in trading on Wednesday, with state-owned Steel Authority of India rising 5%, Tata Steel up 2.9%, and Jindal Steel & Power up more than 2%.