Amidst Trade Talks, EU Pushing India To Cut Tariffs On Cars, Wine

India-West News Desk

NEW DELHI – The European Union is urging India to lower tariffs on automobiles and wine to strengthen trade ties and reduce its dependence on China, a senior EU official said ahead of European Commission President Ursula von der Leyen’s visit to New Delhi. Reuters reported that the EU seeks broader market access for its goods while showing flexibility on agricultural issues to advance free trade agreement talks.

Leyen’s two-day visit, beginning February 27, comes amid geopolitical tensions and growing concerns among Indian exporters following Donald Trump’s recent warning of reciprocal tariffs. She will meet Prime Minister Narendra Modi on February 28, followed by discussions with Trade Minister Piyush Goyal. EU member state leaders will accompany her to outline key areas of cooperation under the EU-India strategic partnership.

India, the EU’s largest trading partner in goods, recorded nearly $126 billion in trade in 2024—an increase of 90% over the past decade. However, European officials argue that India maintains high barriers in sectors such as automobiles, wine, and spirits, Reuters noted.

The next round of trade negotiations is set for March 10-14 in Brussels. Meanwhile, Citi Research estimates that Trump’s proposed tariffs could cost Indian exporters approximately $7 billion annually, adding urgency to the talks.

As part of its “de-risking” strategy, the EU aims to diversify supply chains and strengthen security ties with India. The bloc considers India a key partner in tackling cyber threats and regional tensions, particularly in the Indo-Pacific and the South China Sea, Reuters reported.