FX.co ★ India to Slash Tariffs on High-End EU Cars to 30%

India is set to significantly reduce tariffs on luxury European automobiles to 30%, down from a peak of 110%, as part of its newly established trade agreement with the European Union, according to a government official. This move will formally open the regulated market to prestigious car manufacturers like BMW and Mercedes-Benz, as reported by Reuters. The long-stalled agreement between India and the EU was finalized on Tuesday, aimed at lowering tariffs on various goods and enhancing trade relations. This comes at a moment when countries worldwide are looking to mitigate the risks associated with unpredictable US trade policies and escalating global trade tensions. Currently, India ranks as the third-largest automotive market by sales, trailing only the United States and China. Despite this, India's auto industry remains highly shielded, with import duties ranging from 70% to 110% on foreign vehicles. Under the new agreement, India consented to reduce import tariffs on vehicles priced over €15,000 (approximately $17,963) to 10% eventually, although specific plans for the phased implementation of these tariff reductions have not been publicly released.