The India-UK trade agreement is stalling due to new British safeguard measures on steel. London plans to cut duty-free quotas by 60% and impose 50% tariffs, leading India to consider retaliatory measures on British exports like whisky and automobiles. Beyond immediate tariffs, the upcoming UK Carbon Border Adjustment Mechanism (CBAM) poses a long-term risk. This carbon-linked tax will target steel, aluminium, and cement, potentially costing Indian exporters hundreds of millions of dollars as the UK aligns trade with climate goals.
