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India Slashes Motorcycle Tariffs for US Giants
8 Feb
Summary
- India grants zero-duty access to US motorcycle makers for larger engines.
- Harley-Davidson poised to benefit significantly from the new trade pact.
- The first phase of the agreement is expected to be signed by mid-March.
India and the United States have reached a framework for an interim trade agreement, a development that will see India grant zero-duty access to US motorcycle manufacturers for bikes with engine capacities of 800-1,600 cc and above. This concession is anticipated to provide a substantial boost to American motorcycle brands, most notably Harley-Davidson, which has previously expressed concerns over the impact of high tariffs on its products in the Indian market.
The official announcement indicated that the duty elimination will take effect upon the agreement's implementation. This trade pact is poised to reshape the landscape for high-end motorcycles in India. The first phase of this bilateral trade agreement is slated for signing by mid-March.
As part of the broader agreement, the United States committed to lowering its reciprocal tariffs on Indian goods from 50 percent to 18 percent. This move follows India's recent reduction of import duties on motorcycles up to 1,600 cc from 50 percent to 40 percent last year, signaling a mutual effort to enhance trade relations and market access.
Additionally, India has committed to allowing zero tariffs on several other US imports, including alcoholic beverages, cosmetics, and medical devices, particularly where local production is insufficient or to meet specific quality standards and market prices. A partnership between Hero MotoCorp and Harley-Davidson for the Indian market, announced in 2020, also aims to develop and sell premium motorcycles under the Harley-Davidson brand.
