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While CBAM presents a significant risk to India's steel exports, the effect of U.S. tariffs is expected to be limited

India’s Steel Minister, Sandeep Poundrik, has stated that while the U.S. tariffs will have a limited impact on the country's steel sector, the European Union’s carbon tax could lead to significant repercussions for exports.

While CBAM presents a significant risk to India's steel exports, the effect of U.S. tariffs is expected to be limited

According to Reuters, India's Steel Minister Sandeep Poundrik spoke on Wednesday at the FT Live Energy Transition Summit held in India. The minister emphasized that around two-thirds of India's steel exports are directed to Europe, while exports to the United States are almost negligible.

India has requested an exemption from the Carbon Border Adjustment Mechanism (CBAM), which is expected to impose additional taxes on high-carbon products such as steel, aluminum, and cement. However, Poundrik stated that “the carbon emission limits proposed under CBAM will definitely impact exports.”

The minister noted that Indian steel is largely produced using high-emission blast furnaces and expressed concern about plans to expand this capacity. He also highlighted ongoing concerns about cheap imports and said the government is expected to make a decision regarding additional tariffs to protect domestic production.

Last month, India proposed a 11–12% import duty on certain steel products for a period of three years, primarily to curb shipments from China.

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