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India comes under pressure to cut vehicle import tariffs

Both the EU and US want India to reduce its 110% vehicle import tariff, which has protected domestic manufacturers. By Will Girling

India is reportedly coming under pressure from the EU to remove its high tariffs on imported vehicles. On 7 April 2025, Reuters cited anonymous industry and government sources claiming that discussions were in progress. A potential compromise plan could be a phased reduction from the existing 110% tariff to 10%. At the time of writing, neither the European Commission nor India’s Ministry of Commerce and Industry has issued any public comment on the status of negotiations.

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