European auto major Skoda Auto Volkswagen India on Monday said while it does not support the new reciprocal tariff imposed by the Trump Administration, which have now been paused for 90 days on non-retaliating countries, the move may open up opportunities for the industries in the long term.

Earlier, the group, which is battling a `11,000-crore tax show cause notice for alleged customs duty fraud related to the import of cars as completely knocked down units, rolled out the all-new Volkswagen Tiguan R Line at an introductory price of `49 lakh.

“Of course, we do not support the (reciprocal) tariffs but at the same time there are a lot of discussions about opening up the economy even in India through bilateral trade or free trade agreements,” Piyush Arora, Managing Director at Skoda Auto Volkswagen India said at the launch event.

Emphasising that the group always believes in “free trade” and transfer of technology between countries for customers and their benefits, Arora said there is a lot of uncertainty right now hovering around the recent announcements on the tariff front which the US administration has imposed.

He, however, added that these developments (tariff discussion) might expedite the free trade agreements being discussed between India and the EU for a long time. “I do believe that there are opportunities for India. We have always been a proponent of having lower tariffs between Europe whether it is EU trade or bilateral FTA which has been discussed for a very long time but at the same time might give an opportunity.

“There might be short-term hiccups because of increased tariff for our component industry from India which is exporting a good amount of parts to the US and the initial tariffs can hinder that but in the long run maybe it will open up opportunities,” Arora said.

At the same time, it can’t be said at this stage how would this entire tariff issue settle down and in which direction it is heading for as the goal posts are moving, he said, adding, “India getting affected in a different way vis-a-vis some other competing economies so we will have to see how it pans out.”

Built on the MQB EVO platform, the all-new third-generation flagship SUV Tiguan R-Line boasts of a new chassis generation and comes with a 2.0-litre TSI EVO engine