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India to Slash Car Tariffs to 40% in Landmark EU Trade Deal India is set to slash tariffs on cars imported from the European Union to 40%, down from as high as 110%, as part of a sweeping free trade pact expected to be announced Tuesday. The deal, dubbed the “mother of all deals,” will immediately lower duties for about 200,000 combustion-engine cars priced above 15,000 euros, with rates eventually dropping to 10% over time. This agreement is seen as a strategic pivot by the EU toward the East, signaling a shift away from the Trump-era protectionism that dominated transatlantic trade. While Trump championed tariffs and isolation, the EU is betting on deeper ties with India to counterbalance U.S. unpredictability and secure new markets. The move is a major boost for European automakers like Volkswagen, Renault, Mercedes-Benz, and BMW, which have struggled to gain traction in India’s fiercely protected market. Battery electric vehicles (EVs) will be excluded from tariff cuts for the first five years to shield domestic investments by companies like Mahindra & Mahindra and Tata Motors. India’s car market is the world’s third-largest, but until now, high tariffs have kept European brands out. The new deal could see luxury and mainstream European cars flooding in, testing the appetite of Indian buyers before more local manufacturing kicks in. But the pact isn’t just about cars. It’s expected to lift Indian exports of textiles and jewellery, sectors hit hard by U.S. tariffs. With India’s car market projected to hit 6 million units by 2030, European firms are already lining up new investments. So who wins? European carmakers, Indian consumers, or the politicians cutting the deals? #trade#India#EU#cars#tariffs#Volkswagen#Renault#Mercedes#BMW#antitrump#EUpivot 📱American Оbserver - Stay up to date on all important events 🇺🇸