The free trade agreement between India and the UK has hit a standstill. The primary conflict centers on the UK's plan to implement a Carbon Border Adjustment Mechanism by 2027, which would tax carbon-intensive imports such as steel, aluminum, and cement. Indian exporters face potential tariff surcharges between 14 and 24 percent, threatening the competitiveness of their industrial exports. This regulatory clash, combined with new steel import quotas, has led to threats of retaliatory tariffs on British goods.
