India’s steel industry is unlikely to face major effects from U.S. tariffs, but the European Union’s carbon tax is expected to influence steel exports. Approximately two-thirds of India’s steel exports go to Europe, while exports to the U.S. remain negligible. India has requested an exemption from the EU’s carbon border adjustment mechanism (CBAM), which could levy higher taxes on imports of high-carbon goods, including steel, aluminum, and cement.

Indian steel is largely produced using blast furnaces, which generate high emissions, and further expansion of blast furnace capacity remains a concern. The country's steel secretary Sandeep Poundrik highlighted ongoing worries over cheap imports, noting that the government is expected to decide on safeguard duties. Last month, India proposed an 11%-12% three-year import tariff on certain steel products to curb shipments from top producer China.