In a move that could ease trade tensions between India and the United States, the Indian government has announced further reductions in customs duties on imported motorcycles, particularly benefiting American motorcycle giant Harley-Davidson. The decision comes just ahead of Prime Minister Narendra Modi’s proposed visit to Washington, following his recent conversation with US President Donald Trump.
As per the Union Budget 2025, the customs duty on Completely Built-Up (CBU) motorcycles with engine capacities up to 1600cc has been lowered from 50% to 40%. For high-end motorcycles exceeding 1600cc, the reductions are even more significant. The government has also slashed duties on imported cars and other motor vehicles, though the exact impact on effective duty rates remains unclear.
Tariffs on Harley-Davidson motorcycles have been a recurring source of tension in India-US trade relations. Trump had recently criticized India’s high import duties, labeling the country a “tariff king.”
Earlier, India had already reduced tariffs on imported motorcycles to 50% in February last year. The latest cut signals New Delhi’s willingness to address Washington’s concerns, especially with Trump now in his second term.
The tariff reduction comes at a crucial diplomatic juncture, as preparations for PM Modi’s visit to the US gather momentum. Following Trump’s remarks that PM Modi is likely to visit the White House “probably February,” the Ministry of External Affairs confirmed ongoing discussions for an early visit.
“Prime Minister and President Trump had a telephone conversation recently. The two sides are working on an early visit of the PM to the US to further deepen India-US Comprehensive Global Strategic Partnership. Specific dates for the visit would be announced at the appropriate time,” said Randhir Jaiswal, official spokesperson for the Ministry of External Affairs.
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