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India to Slash EU Car Import Tariffs in Major Trade Deal

India to Slash EU Car Import Tariffs in Major Trade Deal

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The Spin

Slashing car import tariffs from 110% to 40% represents India's most aggressive market opening yet and delivers massive wins for European automakers while protecting domestic EV manufacturers for five years. The move strengthens bilateral trade worth $136.5 billion and helps offset devastating 50% U.S. tariffs that have hammered Indian textile and jewellery exporters since August.

Cutting tariffs to benefit foreign luxury carmakers threatens India's protected domestic auto industry that employs millions and risks flooding the market with European imports before local manufacturers can compete. The deal forces India to sacrifice agricultural protections and accept punitive EU carbon levies while European farmers get shielded from Indian rice imports.


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© 2026 Improve the News Foundation. All rights reserved.Version 6.18.0

© 2026 Improve the News Foundation.

All rights reserved.

Version 6.18.0