By Admin 
India can reduce the tariff on cars from European Union (EU) countries to 40 percent. Currently 110 percent tariff is applicable. Amidst US tariff threats, India is going to sign a trade deal with the European Union on Tuesday (January 27, 2026), which is also being called the Mother of the Deals. Just a few days ago, the EU had decided to suspend the trade deal with America.
US President Donald Trump wants control over Greenland and many EU countries are against it. He has also openly criticized this decision, after which Trump has announced to impose 10 percent tariff on eight EU countries from February.
Tariff may be up to 10 percent
According to Reuters report, two sources have said that the Indian government has agreed to immediately cut tariffs on cars from 27 countries of the European Union. He also said that this tariff will be further reduced to 10 percent in the coming time. In this way, it will become easier for European automobile companies like Volkswagen, Mercedes-Benz and BMW to access the Indian market.
Sources have given this information on the condition of anonymity. He said that this is highly confidential information, in which there can be changes at the last minute. However, the Indian Commerce Ministry and the European Commission have refused to say anything on this.
Free trade agreement to be signed between India and EU on January 27
Free trade agreement between India and European Union can be signed on 27 January. It is being called the ‘Mother of All Deals’ by both sides and India’s trade surplus with the EU is expected to reach $51 billion by 2031.
According to reports, talks on FTA between the world’s two biggest economies started about a decade ago, but in view of the increasing trade uncertainty in the world, both the countries have taken it forward rapidly.
According to a research report released by MK Global on Sunday, a comprehensive free trade agreement can significantly strengthen India’s trading position with the EU. With this agreement, India’s trade surplus with the EU can increase by more than $50 billion by FY 2031, due to which the EU’s share in India’s total exports can increase to about 22-23 percent as compared to 17.3 percent by FY 2025, which will give a tremendous boost to India’s export growth. Although India’s share in the EU export market is currently only 0.8 per cent, the agreement is becoming increasingly important for Europe as well.
Also read:-
Trump may be impeached… US President’s MPs are angry with the action against India, big revelations in leaked audio