India may reduce tariff concessions for the UK due to steel tariffs

India may reconsider its tariff concessions under the free trade agreement with the United Kingdom if its steel exports are not exempted from the proposed British safeguard duties. This was reported by Bloomberg, citing a senior Indian government official.

India is concerned about the UK’s new steel safeguard measures, which call for a sharp reduction in duty-free import quotas and the imposition of a 50% tariff on shipments exceeding those limits. These measures could potentially restrict market access for Indian steel.

At the same time, according to a British official, the UK views the free trade agreement as a separate issue from its steel measures. In his opinion, India is unlikely to be able to change the terms after the agreement has been signed.

British Minister for Business Peter Kyle will visit India on June 2 and is scheduled to meet with his counterpart Piyush Goyal to discuss the earliest possible entry into force of the free trade agreement signed in May 2025.  This is expected to happen this year.

As reported by GMK Center, the UK is negotiating with the EU regarding an exemption from steel import quotas. Trade Minister Chris Bryant believes that the parties should avoid mutual trade restrictions imposed to protect local industries. In his view, the UK should be added to the bloc’s “Made in Europe” scheme.