EU wants India to remove tariffs on car imports: Report

08-Apr-2025

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The European Union wants India to eliminate tariffs on car imports under a long-pending trade deal and the government is willing to sweeten its current proposal to seal the talks, sources told Reuters.

India is open to the phased reduction of tariffs to 10 per cent from more than 100 per cent, two industry sources and a government official said. 

That is despite industry lobbying for India to retain at least a 30 per cent tariff even if it starts reducing the levy, and also not tinker with import duties on electric vehicles for four more years to protect domestic players.

The EU's demands come weeks after US President Donald Trump's administration sought a similar elimination of import duties on cars, including electric vehicles, as part of bilateral trade talks with India, piling pressure on domestic carmakers.