After US warning, India may slash duties on some high-end goods

A day after President Donald Trump criticised India, China and Brazil for imposing “high tariffs” on American goods, New Delhi is learnt to be considering lowering duties on some high-end US products, including Harley-Davidson motorcycles, electronic items and special steel.

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Currently, India imposes over 100 per cent duty on 20 US items. Sources said the Centre could, in its upcoming Budget, announce tariff cuts on some of these imports.

100% duty on 20 american items

• India imposes around 100% duty on 20 US items
• Trump has long been seeking cut in tariff on Harley-Davidson bikes
• Harley had shut its India operations in 2020 amid dwindling sales and high duty

In November last year, Commerce and Industry Minister Piyush Goyal had indicated that India may be “open to Trump’s longstanding request to lower tariff on Harley-Davidson motorcycles”. He had said India wasn’t currently producing such heavy bikes, creating little domestic competition.

While the Centre has been cautious about reducing tariffs on imports, Goyal had said such requests “could be revisited” in terms of specific products such as Harley-Davidson bikes where there was no domestic equivalent.

At an event in Florida, the US President called out India, China and Brazil for being “tremendous tariff makers”. Trump, who took charge as the President for the second term on January 20, said his government “would not allow the three nations to continue on this path”.

“We are going to impose tariffs on outside countries and outside people who really mean harm to us. Look at what others do. China is a tremendous tariff maker… and India, Brazil and so many other countries. They mean us harm, but want to make their country good. We are not going to let this happen any longer because we are going to put America first,” he said in Florida.

It wasn’t the first time Trump raised the issue of “high tariffs” levied by India as he had mentioned it during his election campaign too.

In 2020, Harley-Davidson closed its India operations amid dwindling sales and high duty and tax structure. In 2023, it resumed the operations through a collaboration with Hero MotoCorp, which oversees manufacturing, sales and service for Harley motorcycles in India.