India and the UK are negotiating trade challenges as the UK prepares to implement its Carbon Border Adjustment Mechanism (CBAM) by 2027. The carbon tax targets imports of steel, iron, aluminum, fertilizer, and cement, potentially affecting hundreds of millions of dollars in Indian exports. These environmental tariffs are creating friction in the Comprehensive Economic and Trade Agreement (CETA). India is weighing its response, including potential changes to duty concessions on British goods, as the two nations balance climate goals with industrial trade interests.
