India's Steel Exports to EU Impacted by New Tariff Quotas and CBAM Regulations

India's steel and engineering exports to the EU face challenges as the bloc reduces tariff-free import quotas by 47% and doubles out-of-quota duties to 50%. This change, effective after June 2026, affects around 20 steel-related items. The EU aims to protect its domestic industry amid trade diversions following US tariff increases. Additionally, the Carbon Border Adjustment Mechanism (CBAM) complicates compliance, with financial implications starting in 2027. Despite these hurdles, India's engineering exports are projected to reach $120-122 billion this fiscal year, showing resilience against global trade disruptions.

Published Mar 30, 2026

India's steel and engineering exports to the EU are set to face significant setbacks as the EU reduces tariff-free import quotas by 47% and increases duties on out-of-quota shipments to 50%, effective post-June 2026. This revised regime will affect approximately 20 steel-related items.

AI-curated by Theia

The EU's measures are part of a broader strategy to protect its domestic industry amid increasing US tariffs. Concurrently, the Carbon Border Adjustment Mechanism (CBAM) will impose carbon-linked duties starting in 2027, complicating compliance for Indian exporters. Despite these challenges, engineering exports from India are expected to grow to $120-122 billion this fiscal year, driven by resilience despite geopolitical tensions and tariff barriers.