After Trump, EU seeks 0% tariffs on car imports from India

The government is willing to reduce import duty on cars from more than 100% to 10%.

The European Union wants India to eliminate tariffs on car imports as part of a new trade deal, just weeks after US President Donald Trump sought similar tax breaks on American imports.

According to media reports, the government of India is willing to consider a tariff cut on car imports, albeit in a phased manner. It is said that the government is open to reducing the import duty on cars from more than 100% to just 10%.

The proposed tax break is expected to massively benefit European carmakers like Volkswagen, Mercedes-Benz, BMW and Audi. American EV maker Tesla also stands to benefit from the reduction in import duty as it plans to import its EVs into India from its Berlin plant.

Domestic players like Tata Motors and Mahindra have opposed the lowering of import tariffs on EVs. The industry has proposed that the import duty be reduced in phases, initially from over 100% to 70% and then to 30%.

Source: Reuters