The French wine on which Trump had threatened to impose 200 percent tariff will now become so cheap in India.

America has suffered a severe blow due to the Free Trade Agreement (FTA) signed between India and the European Union (EU) on Tuesday (January 27, 2026). US President Donald Trump’s threats, on the basis of which he is trying to put pressure on European countries regarding Greenland, have also been dealt a severe blow. Recently, Trump had threatened France that he would impose 200 percent tariff on their wines. However, under FTA, India is going to reduce the tariff on the liquor of European countries.

According to news agency PTI, after the free trade deal, the tax on European cars like BMW, Volkswagen and Mercedes in India will be reduced to 10 percent, which is currently 110 percent. At the same time, the tax on liquor and wine coming from Europe will be reduced from 150 percent to 20 to 30 percent, while the tax on olive oil will be reduced from 40 percent to zero. This means that European countries will not have to pay any tariff on the export of olive oil.

At present America and European countries are face to face regarding Greenland. European countries are opposing Trump’s plan to occupy Greenland and some have even openly criticized his stance. These countries are with Denmark on the issue of Greenland, after which Trump has imposed 10 percent tariff on eight European countries to create pressure and has threatened that he can increase this tariff further. Meanwhile, French President Emmanuel Macron had last week rejected Trump’s invitation to join the Board of Peace.

Trump became very angry with Macron’s move and he threatened to impose 200 percent tariff on French wine and champagne. Citing the economy of France, he also said that Macron is going to step down from the post soon. The Board of Peace is a platform aimed at bringing peace, reconstruction and stability to Gaza after the war. For its permanent membership, one billion dollars will have to be paid, while the tenure of temporary members will be three years.

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