Piyush Goyal Warns Europe of Economic Risks from Carbon Border Adjustment Mechanism
Piyush Goyal cautions European nations that new tariffs may harm their economies and emphasizes the need for strong trade partnerships.
New Delhi, October 23 (Daily Kiran) : Central Commerce and Industry Minister Piyush Goyal has issued a warning to European nations regarding the potential economic repercussions of the Carbon Border Adjustment Mechanism (CBAM) and tariffs on steel imports that could reach up to 50%. Speaking during a Q&A session at the Berlin Global Dialogue 2026, Goyal emphasized that these measures could ultimately damage Europe’s economy, industries, and consumers.
He stated, “If you have implemented CBAM and imposed a 50% tariff on steel imports, you are creating difficulties for yourself. This will increase the cost of living, cause inflation woes for people, and your industries will lag in global competitiveness.”
Goyal highlighted the significant opportunity for India and the European Union (EU) to forge a robust economic partnership based on trust, competitiveness, and complementary capabilities.
At another event in Berlin, he noted that bilateral trade between India and Germany could escalate from the current €31 billion to €310 billion if both countries leverage their strengths and collaborate on new technologies and products. However, he did not specify a timeline for achieving this goal.
Goyal is currently on an official visit to Germany and the Netherlands from October 22 to 27, accompanied by a delegation of nearly 100 Indian industries and startups.
During this visit, Germany’s Minister for Economic Affairs and Energy, Katharina Reiche, emphasized the need to reduce bureaucratic hurdles and promote joint projects, stating that trade between the two nations could be doubled from its current level.
Addressing the India-Germany Business Roundtable and the inauguration of the German Council on Foreign Relations (DGAP) India Center, Goyal expressed optimism about signing the India-EU Free Trade Agreement (FTA) by the end of this year, with implementation possible within the next four to five months.
Earlier in the day, Goyal and Reiche held a bilateral meeting to discuss enhancing cooperation in various sectors, including artificial intelligence (AI), semiconductors, energy, and advanced manufacturing.
Goyal shared on social media that both leaders explored collaboration possibilities in AI, semiconductors, advanced manufacturing, critical minerals, green hydrogen, renewable energy, energy storage, and robust supply chains. They also discussed increasing investments in India’s industrial and digital ecosystems.
He concluded that the India-EU FTA could be a “game changer” for businesses on both sides, providing Indian and German companies with the opportunity to realize their full potential.
