India's Strong Stand Against EU's Carbon Tax Plan: A Looming Trade War?

The Indian government has issued a stern warning to the European Union regarding its plans to levy a carbon tax on key Indian exports. Commerce Minister Piyush Goyal described the EU's Carbon Border Adjustment Mechanism as 'irrational' and cautioned that India would retaliate with its own duties if the tax is imposed.

Goyal argued that the proposed tariffs, which could range from 20 to 35 percent on steel, aluminum, and cement, could harm both economies. He emphasized the need for developed countries to support developing nations through technology and funding, rather than imposing punitive measures.

Amid ongoing discussions with the EU, Goyal expressed hope for a resolution while highlighting India's concerns about fulfilling climate responsibilities fairly. He also noted progress in India-US trade talks, aiming for robust economic ties despite global tensions.

(With inputs from agencies.)