Piyush Goyal warns Europe on CBAM, 50 pc steel duty; says trust hardest currency in business

Piyush Goyal warned that Europe’s carbon border mechanism and high steel import duties could increase living costs and hurt industries. He projected India-Germany trade could reach €310 billion, while highlighting the proposed India-EU FTA and cooperation in strategic sectors

New Delhi: Commerce and Industry Minister Piyush Goyal has warned European countries that the Carbon Border Adjustment Mechanism (CBAM) and high import duties on steel could raise cost of living, make industries uncompetitive and hurt consumers.

During a question and answer session at the Berlin Global Dialogue 2026, the minister said, “If you have put a CBAM on yourself, you put a 50 per cent import duty to bring steel into your country, you are inviting disaster. He noted that trust is the hardest currency in commerce today. “Your cost of living will go up. Your people will be unhappy. Your industry will be out priced,” Goyal added.

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Speaking at another programme in Berlin, the minister noted that India-Germany bilateral trade could rise to €310 billion from around €31 billion at present if the two countries focus on complementary strengths and jointly create products and technologies. However, he did not specify a timeline for achieving the target.

Notably, Goyal is on an official visit to Germany and the Netherlands from October 22 to 27 and was accompanied by a delegation of about 100 Indian businesses and startups. Meanwhile, German Federal Minister for Economic Affairs and Energy Katherina Reiche called for reducing red tape on both sides and undertaking joint projects, saying bilateral trade could be doubled.

Addressing the India-Germany Business Roundtable and inaugurating the India Centre of the German Council on Foreign Relations (DGAP), Goyal said the India-EU free trade agreement (FTA) is expected to be signed by the end of this year and could become operational within the next four to five months.

Apart from that, Goyal and Reiche held a bilateral meeting earlier in the day and discussed cooperation in artificial intelligence, semiconductors, energy and other sectors. “Discussed opportunities in AI, semiconductors, advanced manufacturing, critical minerals, green hydrogen, renewable energy, energy storage, and resilient supply chains, as well as increased investment in India’s industrial and digital ecosystems,” Goyal said in a social media post.

“We also exchanged views on how the India-EU FTA will prove to be a game-changer that would help businesses in both India and Germany realise their full potential,” he added.