India Warns of Retaliatory Tariffs Over EU’s Proposed Carbon Tax

ENA Sectors 2025-05-07 16:26:05 New Delhi, May 7 (KNN) Union Commerce and Industry Minister Piyush Goyal on Tuesday strongly opposed the European Unions proposed carbon tax on Indian goods, warning of retaliatory tariffs if the Carbon Border Adjustment Mechanism (CBAM) is implemented. Speaking at an event in New Delhi, Goyal criticised the CBAM, calling it very, very irrational and unfair to friendly nations like India. If they will put in carbon tax... we will retaliate. It will hurt their own economy, and the retaliation will further hurt them, he said. CBAM proposes a carbon levy on imports such as steel, aluminum, and cement, potentially raising costs by 20 35 per cent. Goyal stressed that such measures could severely impact Indian exporters and disrupt trade ties. He emphasized the need for developed countries to support developing nations by sharing green technologies and financial resources to address climate change effectively. Goyal also remarked that global conversations on climate change are fading, despite its growing urgency. The minister recently raised Indias objections during visits to London, Oslo, and Brussels. We have conveyed our concerns clearly, an official stated, confirming Indias firm stance on potential retaliation. Meanwhile, Goyal described ongoing talks on a proposed India-US bilateral trade agreement as fabulous. He highlighted the opportunity for deeper cooperation, stating that India offers competitive manufacturing, while the US excels in innovation and technology. There are many products Id rather buy from the US than non-market economies, he noted. Indias tough position on CBAM underscores its commitment to fair trade and climate equity, while also seeking stronger ties with global partners. (KNN Bureau) 42013 https://knnindia.co.in/news/newsdetails/sectors/india-warns-of-retaliatory-tariffs-over-eus-proposed-carbon-tax 2025-05-07 16:26:05 knnindia.co.in India Warns of Retaliatory Tariffs Over EU’s Proposed Carbon Tax