India and the European Union finalized a landmark trade deal on Tuesday, cutting tariffs on autos, textiles, and spirits. The pact aims to double EU exports to India by 2032. European companies are expected to save $4.75 billion in duties.
The deal will gradually reduce tariffs on 96.6% of traded goods by value. Indian cars will face just 10% tariffs in five years, down from 110%. Tariffs on wines, spirits, and machinery will also fall sharply. European Commission President Ursula von der Leyen called it “making history.”
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The agreement follows a surge in global trade pacts as countries hedge against U.S. tariffs. India recently signed deals with Britain, New Zealand, and Oman. The EU also secured a pact with Mercosur. Officials say the India-EU deal strengthens economic ties while reducing dependency on volatile U.S. policies.
The United States strongly criticized the deal. Treasury Secretary Scott Bessent accused India of deceptive practices over Russian oil. Washington maintains a 25% tariff on India for buying Russian oil. President Trump also expressed anger over delayed U.S.–South Korea trade negotiations.
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The formal signing will take place after legal vetting, expected within six months. Officials predict implementation within a year. Analysts say the deal gives EU firms immediate price advantages in India while boosting exports in labor-intensive sectors.