India Looks to Deepen Energy Trade with US, Goyal Slams EU’s Carbon Tax Plans

India expects its energy trade with the United States to rise significantly in the coming years, Commerce and Industry Minister Piyush Goyal said on Tuesday, stressing that the country’s energy security will have a “high element” of US involvement going ahead.

Push on Nuclear Collaboration

Speaking at the US-India Strategic Partnership Forum (USISPF) in New York, Goyal highlighted that New Delhi and Washington will work closely on nuclear power as well. The minister is in the US for talks on a potential Bilateral Trade Agreement between the two countries.

“India is a big player in the energy trade. We are big importers of energy from across the world, including from the US We expect to increase our trade with the US on energy products in the years to come,” Goyal said, adding that strengthening energy ties would contribute to price stability and diversification of sources.

Goyal noted that India and the US had been in discussions for years on nuclear power, but are now “working in India to support private efforts” to pave the way for cooperation in the sector. Nuclear collaboration has long been seen as a key pillar of India-US strategic engagement but has faced regulatory and liability-related roadblocks in the past.

Trade Tensions with US

Goyal’s comments also come against the backdrop of wider trade tensions. Earlier this year, the US imposed an additional 25 percent tariff on Indian imports as a penalty for New Delhi’s continued purchases of Russian oil. President Donald Trump has repeatedly urged India to increase imports of American energy instead.

Criticism of EU’s Carbon Tax

Turning to Europe, Goyal reiterated India’s opposition to the European Union’s Carbon Border Adjustment Mechanism (CBAM), which is due to take effect in 2026. The CBAM will levy extra tariffs on imports based on carbon intensity, hitting industries such as steel and cement.

“There is a lot of effort to address climate change through trade measures, but we must not conflate the two. That risks dissuading countries from joining the fight against climate change,” Goyal warned. He argued that CBAM could backfire by inflating living costs within the EU and eroding the competitiveness of European exports.

Calling it a form of “green protectionism,” he cautioned that the mechanism was “a trap” that could harm Europe’s own economy while straining global trade ties.

Critical Minerals and Supply Resilience

Goyal also stressed the importance of resilient critical mineral supply chains, urging diversification to ensure that “trade is not weaponised.” With clean energy transitions worldwide creating surging demand for lithium, cobalt, and rare earths, India has been seeking partnerships to reduce vulnerability in this strategic area.

The minister’s comments underscore India’s balancing act - building stronger energy and trade ties with the US while resisting protectionist measures from Europe, even as it negotiates its position in global climate and energy markets.