India’s Big Signal On Tariff: Duty On Harley Cut Amid Donald Trump’s Demand

New Delhi:

Tariffs on Harley Davidson bikes, a mushrooming friction point between India and the US — have been slashed further ahead of Prime Minister Narendra Modi’s proposed visit. In the Union budget 2025 announced today, the government announced a reduction in basic customs duty on the import of motorcycles.

For motorcycles with engine capacity not exceeding 1600 cc, the duty on CBUs (Completely Built Up) has been slashed from 50 per cent to 40 per cent. For larger motorcycles with engine capacity exceeding 1600 cc, the reductions are higher. 

Though basic customs duty on the import of cars and other motor vehicles has also been reduced, it is not clear whether their effective duty rates will change. 

The high tariffs in India had been a sore point with US president Donald Trump, who has recently won a second stint.