Sat Feb 01 16:17:05 UTC 2025: ## India Cuts Harley-Davidson Tariffs Ahead of Modi’s US Visit

**New Delhi, [Date]** – India has significantly lowered import tariffs on motorcycles, particularly those made by Harley-Davidson, in a move widely seen as an olive branch to the United States ahead of Prime Minister Narendra Modi’s upcoming visit. The Union Budget 2025 announced a reduction in basic customs duty on imported motorcycles, slashing the rate from 50% to 40% for motorcycles with engine capacities up to 1600cc. Even steeper reductions were applied to larger motorcycles.

This tariff reduction follows months of tension between the two countries over trade imbalances, with US President Donald Trump previously criticizing India’s high tariffs, particularly on Harley-Davidson motorcycles. Trump had publicly stated that India imposed a 100% tax on Harley-Davidson imports while receiving no reciprocal tariffs on its own motorcycle exports to the US. While he acknowledged a previous 50% tariff reduction following a phone call with PM Modi, he deemed it insufficient.

While the budget also includes reductions in basic customs duty for cars and other motor vehicles, the impact on their effective tariff rates remains unclear. The move to significantly reduce tariffs on motorcycles, however, is seen as a direct response to Trump’s concerns and a gesture of goodwill aimed at improving US-India relations before Modi’s visit.

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