American motorcycle brands, including Harley-Davidson, could see a price drop in India following the Budget 2025 announcement by Finance Minister Nirmala Sitharaman on February 1, 2025. The budget has reduced import duties on high-capacity motorcycles.
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The import duty for motorcycles with engine capacities up to 1,600 cc, which are imported as completely built-up (CBU) units, has been decreased from 50 percent to 40 percent.
Harley Davidson is renowned for its high-capacity motorcycles.
Moreover, the import duty on semi-knocked down (SKD) kits has been lowered from 25 percent to 20 percent, while completely knocked down (CKD) units now incur a tax of 10 percent, reduced from the previous 15 percent.
This tariff reduction is a response to threats from US President Donald Trump regarding reciprocal taxes on nations imposing high tariffs on American goods.
In December, Trump remarked that India’s taxes are excessive, asserting, “If they tax us, we tax them the same amount.”
According to the Ministry of Commerce, India emerged as the largest trading partner of the US last financial year.
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Additionally, the tariff on Harley-Davidson bikes has been a contentious issue between India and the US for years, with Trump advocating for its reduction.