India’s move to slash tariffs on goods ranging from electronics to Harley-Davidson motorcycles is seen as New Delhi paving the ground to ease trade tensions with Washington ahead of Prime Minister Narendra Modi’s visit to the US for talks with President Donald Trump.
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Delhi lowered tariffs on goods in the federal government’s budget on Saturday, reducing the average import duty by one percentage point to 10.66 per cent.
Among them are 1,600cc engine motorcycles – a category dominated by heavyweight touring and cruiser bikes, which are Harley-Davidson’s speciality. Tariffs on fully built imported motorcycles were reduced to 30 per cent from 50 per cent. The move should benefit the American company and help it sell more motorcycles to India, analysts said.
Harley-Davidson motorcycles were highlighted by Trump in 2023 when he criticised India’s high tariff structures, citing the duties imposed on the vehicles made by the US company as an example.
Modi is set to make a two-day visit to the US from February 12 and hold talks with Trump on issues ranging from trade to defence, a Press Trust of India report said on Monday.
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Analysts said Delhi’s measure was aimed at fending off the threat of higher US tariffs similar to those recently placed on Canada, Mexico and China. On Monday, Trump decided to hold off on imposing the tariffs against Canada and Mexico for 30 days after both countries agreed to bolster security along their borders with the US.