Zero Tariff on Harley Davidson Bikes, Reduced Duty on Cars, Major Update on US Deal
India will eliminate tariffs on Harley Davidson motorcycles and reduce duties on luxury cars imported from the US as part of a bilateral trade agreement.
India has announced a significant development in its bilateral trade agreement with the United States, wherein it will remove tariffs on the iconic Harley Davidson motorcycles. This move is expected to benefit a substantial portion of India's $86 billion exports, providing an estimated gain of around $74 billion. Official sources indicate that from the day the agreement is signed, all tariffs on the import of Harley Davidson motorcycles with engine capacities ranging from 800CC to 1600CC will be abolished, alongside a promise of no import quota, recognizing the limited market for these bikes in India. In addition to Harley Davidson, the trade agreement will introduce gradual reductions in tariffs on high-end luxury cars imported from the US. Notably, the import duty on diesel vehicles exceeding 2500CC and petrol vehicles over 3000CC will be reduced from 66% to 50% starting from the effective date of the BTA. Over a decade, this duty is slated to fall to 30%, significantly lowering the cost for high-end consumers in India and potentially spurring an increase in luxury vehicle sales. The implications of this trade deal are vast, as it reflects India's strategic intent to boost trade relations with the US while accommodating international brands. The removal of tariffs on Harley Davidson motorcycles and the reduction in car duties might create a favorable economic environment for luxury vehicle manufacturers, possibly leading to increased investments and collaborations. As trade tensions ease, both countries could benefit from enhanced cooperation and economic growth in the long term.