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flag The EU’s carbon border tax applies to Indian exports without exceptions, despite a new trade deal.

flag The EU's Carbon Border Adjustment Mechanism (CBAM) will apply to Indian exports without exceptions, despite the new India-EU Free Trade Agreement, according to German official Jochen Flasbarth. flag CBAM, now fully active since January 2026, imposes fees on carbon-intensive imports like steel and cement to prevent carbon leakage and ensure fair competition amid the EU’s domestic carbon pricing. flag While the FTA brings trade benefits, CBAM costs may offset some gains. flag Both sides have agreed to technical talks to address concerns, but no exemptions will be granted. flag They also plan to sign a critical minerals pact in June 2026 to reduce reliance on China.

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