New Delhi: With US President Donald Trump revving up the tariff war, German luxury carmakers BMW and Mercedes-Benz in India on Thursday called for more free trade based on low tariffs and reduced trade barriers, saying it will be a win-win situation for all. As part of reciprocal tariffs on about 60 countries to counter higher duties on American products imposed globally, the US on Wednesday announced 27 per cent reciprocal tariffs on India saying New Delhi imposes high import duties on American goods.
However, autos and auto parts as well as steel and aluminium articles, already subject to Section 232 tariffs at 25 per cent, announced earlier in US President Donald Trump’s order on March 26, 2025, are not covered in the latest order.
“We always subscribe and we always propose that there should be more free trade agreements with the countries. Absolutely, that’s the right way to go, because that way everybody wins, new technologies can come into the country. For example, India can access markets. So that’s a win-win situation,” BMW Group India President & CEO Vikram Pawah said.
He was responding to a query on whether India needs to lower its tariffs on imported cars. “As long as we are headed towards free trade agreements with most of the countries of the world, then I think it will really benefit. It’s more about free trade agreements. The bilateral agreements are what matter in the end,” Pawah noted.
Referring to the India-EU free trade negotiations, he said, “There is good discussion happening there as well. If these things happen, that will benefit everyone.”
Expressing similar views, Mercedes-Benz India MD & CEO Santosh Iyer said, “We believe that open and fair-trade policies are essential for fostering global economic growth and driving innovation.” Free trade, based on low tariffs and reduced trade barriers, has significantly increased international trade and development, benefiting economies and communities worldwide, he added.
Iyer further said, “There should be joint cooperation among larger economies to reduce trade barriers, fostering bigger economic growth for all players.
“We remain committed to working with stakeholders to advocate for balanced trade policies that support economic stability and business growth.”
India currently imposes effective duties ranging from 70 per cent to 100 per cent on new fully-imported cars, depending on fuel and engine type, and CIF (cost, insurance, and freight) value above or below USD 40,000.