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Harley-Davidson Dominates Watchlists: Opportunity for Value or a Potential Trap?

Harley-Davidson Dominates Watchlists: Opportunity for Value or a Potential Trap?

Harley-Davidson Dominates Watchlists: Opportunity for Value or a Potential Trap?

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Harley-Davidson, Inc. (NYSE: HOG) is witnessing a notable spike in investor interest, despite facing considerable hurdles. While the company deals with operational issues and a falling stock price, it has surprisingly found itself topping various watchlists.

This increased attention arises as Harley-Davidson’s shares hover near their 52-week lows. The decline is primarily attributed to unsatisfactory financial results, cautious outlooks, tariff uncertainties, and an impending change in CEO.

This unusual scenario raises an important question: What is piquing investor interest in Harley-Davidson despite these notable challenges?

Turbulent Times: Key Challenges for HOG

Harley-Davidson’s newfound market attention offers a chance for the company to tackle operational issues, including CEO Jochen Zeitz’s forthcoming retirement and ongoing financial pressures.

Harley-Davidson’s financial performance for the fourth quarter and the entire year of 2024 was disappointing, marked by a net loss in Q4, falling revenues, and reduced earnings-per-share (EPS) relative to 2023. However, many within Harley-Davidson’s analyst community suggest that these outcomes reflect ongoing industry adversities, including cyclical headwinds, elevated interest rates affecting consumer confidence, and the management of dealer inventories amid weakening demand.

The company also continues to face market pressures and external uncertainties, particularly concerning potential European Union tariffs on imported motorcycles from the U.S. Harley-Davidson’s cautious financial outlook for 2025 underscores these ongoing challenges. Should these tariffs be reinstated, they could affect Harley-Davidson’s pricing and competitiveness in key European markets. The company is actively lobbying for reciprocal U.S. tariffs if new EU duties come into play.

The Negative Sentiment Surrounding Harley-Davidson Creates Contrarian Opportunities

In spite of its numerous challenges, Harley-Davidson’s increasing visibility on investor watchlists suggests that certain segments of the market perceive opportunity—or at least enough potential to watch closely.

One key attraction is the stock’s valuation. As of early April 2025, the stock was trading at multi-year lows, with a trailing price-to-earnings (P/E) ratio around 6.8 and a forward P/E of 6.6. Its price-to-book (P/B) ratio was approximately 0.92, indicating it is undervalued relative to 1.0. For value investors, these numbers suggest that significant pessimism is already reflected in the stock price, making Harley-Davidson a potentially undervalued asset against its historical earnings capability and intrinsic assets.

Apart from the numbers, the lasting strength of the Harley-Davidson brand is another essential factor. Established in 1903, the company boasts a rich legacy and a fiercely loyal customer base, forming a foundation that some investors believe can endure the current cyclical downturn and leadership transition. Recent operational achievements provide support for this perspective: during the Q4 2024 earnings call, management highlighted that new Street Glide and Road Glide models contributed to gains in U.S. Touring segment market share, a positive note amid broader market challenges.

This slight success suggests that Harley’s Hardwire strategy might still yield results under new management. Meanwhile, deep negative sentiment and recent price declines have positioned Harley-Davidson as a potential contrarian investment—a fundamentally robust brand trading at depressed levels, appealing to investors willing to counter the prevailing sentiment.

Heightened Visibility Keeps Harley-Davidson on Investors’ Radar

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Notably, significant short interest is driving investor focus. As of mid-March 2025, around 14.37 million shares were sold short, representing 11.63% of Harley-Davidson’s public float. Closing these positions would require about 6.1 days of average trading volume. Although this reflects a strong bearish sentiment, it also presents an opportunity for increased volatility should positive developments trigger short covering.

Institutional ownership remains substantial, standing at about 85%, adding further context. Recent filings show that while some funds have slightly scaled back their holdings, others have begun new significant positions or increased existing ones.

Management’s choice to repurchase $450 million in shares in 2024 under a $1 billion authorization might indicate confidence in the company’s valuation, or it could act as technical support during a volatile phase.

Additionally, an uptick in media coverage surrounding the CEO transition, strategic plans, and tariff discussions keeps Harley-Davidson prominent on investor watchlists, with many awaiting an opportune moment to enter.

Balancing Heritage, Value, and Market Volatility for Harley

Harley-Davidson’s current landscape showcases an intriguing contradiction: heightened investor interest amidst operational struggles. Investors are drawn to the stock’s attractive valuation, the brand’s rich heritage, recent success in the U.S. Touring segment, and the contrarian allure in the face of prevailing pessimism.

The outlook for the company hinges on several decisive factors. The ongoing search for a new CEO provides a chance for fresh leadership to build upon both the Hardwire strategy and the brand’s strength. Proactive steps addressing European tariff challenges indicate a focus on mitigating external risks. The firm’s proven performance in critical segments and disciplined operational management position it well to exceed expectations should market conditions improve.

The pressing question for investors is whether Harley-Davidson’s current valuation presents an enticing entry point for future growth, assuming the company can skillfully navigate these transitions and leverage its iconic brand.

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Harley Davidson News

Jeans, Whiskey, and Cricket Balls: UK Ministers Compile Extensive 400-Page List of US Products Facing Potential Tariffs in Response to Trump.

Jeans, Whiskey, and Cricket Balls: UK Ministers Compile Extensive 400-Page List of US Products Facing Potential Tariffs in Response to Trump.

UK officials have compiled an extensive 417-page document detailing US imports that may face tariffs as a response to Trump’s White House onslaught against global trade.

Popular items such as Levi’s jeans, Jack Daniel’s whiskey, and Harley Davidson motorcycles feature prominently in this extensive list.

These products were already subject to tariffs during the trade wars of Mr. Trump’s initial term in office.

Additionally, the exhaustive list encompasses a variety of goods, from livestock and meats like chicken wings to more unusual items including rollercoasters, cricket balls, live bees, and mannequins.

In a surprising twist that may displease the golf-loving president, the compilation includes golf clubs and balls produced in the USA.

This document was unveiled during a four-week consultation period aimed at determining the UK’s response to Trump’s tariff-related rhetoric.

Under Trump’s ‘Make America Wealthy Again’ strategy, the UK has already faced a general 10 percent tariff on its exports to the US, leading to a decline in stock markets globally.

Sir Keir Starmer and Business Secretary Jonathan Reynolds are currently working to negotiate a trade agreement that would eliminate these tariffs.

However, they have established a deadline of May 1, after which the UK may take action.

Jeans, Whiskey, and Cricket Balls: UK Ministers Compile Extensive 400-Page List of US Products Facing Potential Tariffs in Response to Trump.

Consumer favourites like Levi’s jeans, Jack Daniel’s whiskey, and Harley Davidson motorcycles are all in the astonishingly lengthy document.

But the comprehensive list also covers items from livestock and raw meat like chicken wings to rollercoasters and cricket balls.

The comprehensive list also encompasses items from livestock and raw meats such as chicken wings to rollercoasters and cricket balls.

The list was released as part of the government's four-week consultation on how to respond to Trump's tariff tirade last night.

The list was released as part of the government’s four-week consultation on how to respond to Trump’s tariff tirade last night.

The consultation stated: ‘We want to hear your thoughts on the potential impacts of any future UK tariffs on US goods, in response to recent tariff announcements made by the US government.’

‘The feedback collected will assist the Government in evaluating the implications of any UK tariff measures that could be implemented.’

Business Secretary Jonathan Reynolds informed MPs that businesses will have the opportunity to share their views on how they will be affected by any UK actions aimed at countering the US president’s global trade policies.

The Prime Minister has acknowledged that the 10 percent import tariff would have negative economic repercussions for the UK.

Officials are committed to continuing negotiations for a trade agreement with the US, while Sir Keir Starmer emphasized that ‘no options are off the table’ regarding the response.

During a Commons address on Thursday, Mr. Reynolds remarked: ‘We believe the best path to economic stability for the workforce is through a negotiated agreement with the US that leverages our shared strengths.’

‘Nonetheless, we reserve the right to take any actions deemed necessary if a deal is not reached.’

In a move that may horrify the golf-loving president, the list includes clubs and balls made in the USA.

In a move that may displease the golf-loving president, the list includes clubs and balls made in the USA.

‘To ensure that the UK retains every option available in the future, I am formally launching a request for input regarding the ramifications for British businesses of potential retaliatory measures.

‘This is a necessary step for maintaining all options on the table.

‘Over the next four weeks until May 1, 2025, we will seek the opinions of UK stakeholders on products that could possibly be included in any UK tariff reaction.

‘This effort will also allow businesses to express their views and influence the planning of any potential UK actions.

‘If we reach a point where we can negotiate an economic agreement with the US that ends the tariffs on our industries, this request for input will be suspended, and any resultant measures will be revoked.’

Mr. Reynolds added: ‘Further details regarding the request for input will be available on gov.uk later today, along with an indicative list of products that the Government considers most appropriate for potential inclusion.’

On Wednesday night, the US president announced tariffs affecting countries worldwide, with the UK’s 10 percent rate classified as the lowest ‘baseline’ rate, though the Prime Minister acknowledged that British exporters would suffer from this charge.

When addressing senior executives from major UK companies at Downing Street, Sir Keir stated: ‘Clearly, the decisions made by the US will have economic consequences both here and internationally.’

He emphasized that ‘no one benefits from a trade war’ and reaffirmed that the UK maintains a ‘fair and balanced trade relationship with the US.’

Negotiations for an ‘economic prosperity deal’ expected to alleviate the impact of the tariffs will proceed, as Sir Keir promised to ‘fight for the best deal for Britain.’

However, he stated he would ‘only pursue a deal that serves the national interest and is the right decision for the safety of working individuals.’

The Government expressed some relief that the 10 percent rate imposed on the UK is lower than those on other countries.

The EU faces tariffs of 20 percent, while Japan’s rate stands at 24 percent.

In 2023, the UK exported £60.4 billion worth of goods to the US, representing approximately 15 percent of all goods exports.

While the 10 percent blanket tariff will take effect on Saturday, the car sector has already been afflicted by a 25 percent import duty that commenced early Thursday morning.

The FTSE 100 Index experienced a sharp decline upon opening on Thursday, dropping 122.4 points or 1.4 percent in the initial minutes of trading.

Mr. Trump characterized the tariffs as ‘reciprocal’ responses to levies imposed by other countries, though the rationale for the specific 10 percent figure for the UK remains unclear.

The president also cited ‘exorbitant’ VAT rates as a barrier for US businesses, even though this tax affects all purchases in the UK regardless of origin.

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Harley Davidson News

Potential Price Increases in the UK If Response to Donald Trump’s Tariffs Occurs – UK News

Potential Price Increases in the UK If Response to Donald Trump’s Tariffs Occurs – UK News

The UK is about to face tariffs enforced by US President Donald Trump, with the measures expected to commence on April 2.

Trump has dubbed this date ‘liberation day’, arguing that increasing the cost of foreign goods in the US will motivate Americans to purchase locally and strengthen their industry.

However, individuals in the US who rely on imported goods will inevitably bear the brunt of these changes.

The UK and US have been engaged in ‘productive discussions’ aimed at reaching a trade agreement that could prevent these tariffs, but time is running out.

A spokesperson from Downing Street stated (via Sky News): “They talked about the fruitful negotiations between their teams regarding a UK-US economic agreement, affirming that discussions will advance swiftly this week.”

In come the new tariffs, unless the UK can secure a trade deal very quickly (Win McNamee/Getty Images)

In come the new tariffs, unless the UK can secure a trade deal very quickly (Win McNamee/Getty Images)

If an agreement to exempt the UK from tariffs cannot be finalized, Prime Minister Sir Keir Starmer has indicated that the UK ‘reserves the right’ to impose reciprocal tariffs on American goods.

A trade war will not benefit anyone, but if the US imposes a 25 percent tariff on car imports, it will be quite detrimental, and implementing reciprocal tariffs could serve as leverage for urging Trump to reconsider.

The specifics of the UK’s potential tariffs remain uncertain, but the BBC reports that they might target particular products deemed significant by the US.

Harley Davidson motorcycles have been mentioned as a likely candidate for reciprocal tariffs, with notable American brands being potential targets.

The Daily Mail reported that Jack Daniel’s whiskey and Levi’s jeans may also be subjected to tariffs, making them appear pricier and less appealing in the UK market.

The European Union has prepared reciprocal tariffs for such items in the case of a trade conflict, and the UK might consider doing likewise.

Harley Davidson motorbikes, Jack Daniel's whisky and Levi's jeans are among the main targets of EU tariffs, and the UK may decide to do similar (Carsten Koall/Getty Images)

Harley Davidson motorbikes, Jack Daniel’s whisky and Levi’s jeans are among the main targets of EU tariffs, and the UK may decide to do similar (Carsten Koall/Getty Images)

UK trade chief William Bain previously cautioned LADbible that Trump’s tariff initiative has ushered in a ‘new era of uncertainty’, but encouraged businesses to ‘keep calm and continue exporting‘.

In advance of the tariffs, citizens in various countries are already boycotting US products, while experts have informed the BBC that imposing tariffs on the US service sector would be considered the ‘nuclear’ option.

Home Secretary Yvette Cooper remarked that discussions with the US are ‘intense’ and ongoing.

She stated: “We obviously can’t keep a running commentary on different discussions that are taking place, but we must ensure that our actions align with national interests.”

If tariffs are implemented, the UK’s response will be closely scrutinized.

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Harley Davidson News

Trump Sparks Global Financial Turmoil: Stocks Dive Worldwide as Concerns Grow Over Potential 20% Tariff on All Imports to the U.S. and Its Impact on the Global Economy

Trump Sparks Global Financial Turmoil: Stocks Dive Worldwide as Concerns Grow Over Potential 20% Tariff on All Imports to the U.S. and Its Impact on the Global Economy

UK stocks experienced a significant decline today, paralleling global market turmoil fueled by escalating concerns over Donald Trump‘s trade policies, as Keir Starmer‘s ambitions of escaping tariffs fade.

Anxiety is mounting that Mr. Trump will impose a 20 percent tariff on both allies and adversaries on what he has termed ‘Liberation Day’, April 2.

The president has voiced concerns about the United States being taken advantage of by other nations, singling out VAT as an unjust foreign tax—despite it being applied to all sales, not just imports.

The looming threat of a trade war potentially leading to a recession is inciting widespread panic in global stock markets, with Asian markets experiencing a steep drop overnight, and the FTSE 100 falling by 0.75 percent at the open this morning.

Last week, the Treasury’s OBR watchdog projected a scenario involving 20 percent tariffs coupled with retaliatory measures, warning it could trigger an inflation spike and reduce growth by 0.6 percent this year and 1 percent in 2026-27.

Sir Keir has been negotiating for a UK exemption as part of a broader agreement, contending that trade between the two nations is already balanced.

Despite his efforts, he has not been able to prevent tariffs on steel, and government officials appear increasingly resigned to the inclusion of the UK in the tariffs, at least in the initial phase.

Downing Street is reportedly contemplating imposing additional duties on US products such as Jack Daniel’s whiskey, Harley Davidson motorcycles, and Levi’s jeans.

Trump Sparks Global Financial Turmoil: Stocks Dive Worldwide as Concerns Grow Over Potential 20% Tariff on All Imports to the U.S. and Its Impact on the Global Economy

Keir Starmer and Donald Trump have held trade talks amid a frantic bid to dodge US tariffs

The prospect of a trade war has been causing near-panic on global stock markets, with Asia down sharply overnight - and the FTSE 100 dropping 0.75 per cent on opening this morning

The prospect of a trade war has been causing near-panic on global stock markets, with Asia down sharply overnight – and the FTSE 100 dropping 0.75 per cent on opening this morning

The Nikkei 225 index was down more than 4 per cent overnight as investors took fright

The Nikkei 225 index was down more than 4 per cent overnight as investors took fright

The American S&P index has been continuing its decline as the confirmation of Mr Trump's tariffs nears

The American S&P index has been continuing its decline as the confirmation of Mr Trump’s tariffs nears

The Treasury's OBR watchdog modelled 'scenario 3' of 20 per cent tariffs with retaliation last week, warning that it would spark a UK inflation surge and wipe 0.6 per cent off growth this year and 1 per cent in 2026-27

The Treasury’s OBR watchdog modelled ‘scenario 3’ of 20 per cent tariffs with retaliation last week, warning that it would spark a UK inflation surge and wipe 0.6 per cent off growth this year and 1 per cent in 2026-27

Downing Street is said to be considering retaliating with extra duties on US goods such as Jack Daniel's whiskey, Harley Davidson motorbikes and Levi's jeans

Downing Street is said to be considering retaliating with extra duties on US goods such as Jack Daniel’s whiskey, Harley Davidson motorbikes and Levi’s jeans

Sir Keir, pictured at an immigration conference in London this morning, has said the UK 'reserves the right' to introduce reciprocal tariffs on the US if a deal to exempt the UK cannot be reached

Sir Keir, pictured at an immigration conference in London this morning, has said the UK ‘reserves the right’ to introduce reciprocal tariffs on the US if a deal to exempt the UK cannot be reached

The US leader has already confirmed a 25 percent import tax on all vehicles entering the United States, a policy that is poised to impact British luxury car manufacturers like Rolls-Royce and Aston Martin.

Market turbulence intensified overnight when Mr. Trump hinted at the possibility of ‘reciprocal’ tariffs globally.

This could entail a 20 percent baseline tariff on all imports, instead of targeting specific countries based on their tariffs.

‘We would start with all nations; let’s observe the developments,’ Mr. Trump remarked to journalists aboard Air Force One.

In reaction, investors flocked to sovereign bonds and the Japanese yen, while gold prices skyrocketed to new record highs.

S&P 500 futures dropped by 0.8 percent, following a steep decline from Friday, while Nasdaq futures fell by 1.4 percent.

Mr. Trump has identified the EU as a primary target, expressing resentment that the bloc was established to ‘screw’ America. Brussels has committed to retaliatory measures.

Nevertheless, the UK currently applies a 20 percent VAT on most products and services.

A spokesperson from No10 commented on the conversation between Sir Keir and Mr. Trump last night, stating: ‘They talked about the fruitful discussions between their respective teams concerning a UK-US economic prosperity deal, agreeing to continue the negotiations at an accelerated pace this week.’

In its forecast accompanying the Spring Statement last week, the OBR considered the potential of the US implementing blanket 20 percent tariffs alongside equivalent retaliatory actions from trade partners.

It indicated that while the exact results are ‘uncertain’, UK consumer price index (CPI) inflation could rise by 0.3 percentage points.

The challenges posed by heightened inflation on real income and a deceleration in global growth are ‘expected to cause GDP to quickly dip below our primary forecast.’

This would reduce the growth estimate for the year from 1 percent to merely 0.4 percent and could decrease next year’s growth by 1 percentage point.

‘The potential for increased global trade barriers and decreased global productivity suggest that the medium-term UK GDP could be approximately 0.75 percent less than our central estimate,’ the report stated.

The National Institute of Economic and Social Research (NIESR) had previously projected that a 20 percent ‘reciprocal’ tariff could subtract 0.4 percentage points from UK economic growth over the next two years—translating to about £24 billion.

This situation could significantly disrupt the Government’s economic growth plans, especially after Rachel Reeves struggled to align the budget with cuts during last week’s Spring Statement.

The Treasury’s OBR watchdog cautioned that her £9.9 billion headroom—which is historically low—could easily be obliterated by Mr. Trump’s trade initiatives.

Mr Trump has vowed to hit foes and allies alike with levies on so-called 'Liberation Day', April 2

Mr Trump has vowed to hit foes and allies alike with levies on so-called ‘Liberation Day’, April 2

Ministers say they could bring in their own tariffs on US imports this week. This could affect popular goods like Jack Daniel's whiskey, Levi's jeans and Harley Davidson motorcycles.

Ministers say they could bring in their own tariffs on US imports this week. This could affect popular goods like Jack Daniel’s whiskey, Levi’s jeans and Harley Davidson motorcycles.

Sir Keir has affirmed that the UK ‘reserves the right’ to enact reciprocal tariffs against the US if a mutually beneficial agreement cannot be reached.

However, the OBR has indicated that the repercussions of applying reciprocal tariffs against the US may adversely affect the UK more than allowing the tariffs to take effect without intervention.

Considering the negotiations, it has been suggested that scrapping or reducing the digital services tax on major tech firms—such as social media platforms, search engines, and online marketplaces—could be on the table.

Downing Street reported that Mr. Trump extended his best wishes to the King, who has recently had to cancel events due to side effects from his cancer treatment.

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Harley Davidson News

Potential Price Drops for Harley Davidson Bikes in India Following Budget 2025 – Firstpost

Potential Price Drops for Harley Davidson Bikes in India Following Budget 2025 – Firstpost

Exciting news for motorcycle enthusiasts!

In a strategic move benefiting the iconic American brand Harley-Davidson, India has announced a reduction in import duties on premium motorcycles.

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This change is set to make Harley-Davidson motorcycles more attainable for riders throughout the country.

The longstanding tariff on Harley-Davidson has been a contentious issue between India and the United States.

So, what prompted India to lower the import duties on these bikes now? What effects will this have on sales and the market?

Let’s dive in:

Reasons for the Reduced Prices of Harley-Davidson in India

The import duty on motorcycles with engine sizes up to 1,600 cc, brought in as completely built-up (CBU) units, has decreased from 50% to 40%.

For larger motorcycles exceeding 1,600 cc, the reductions are even more significant.

Potential Price Drops for Harley Davidson Bikes in India Following Budget 2025 – Firstpost
This change could enhance accessibility to Harley-Davidson motorcycles for Indian bike enthusiasts. Reuters/File Photo

The tariff on semi-knocked down (SKD) kits has been reduced from 25% to 20%, while completely knocked down (CKD) units will now incur a tax of 10% instead of 15%.

This tariff issue has been a long-standing point of contention between India and the United States, with former US President Donald Trump repeatedly advocating for its reduction. The announcements made in the Budget 2025 have helped alleviate these tensions.

With these duty reductions, Harley-Davidson motorcycles are expected to become more affordable, potentially expanding their customer base and boosting sales and market share for the brand.

While the basic customs duty on cars and other vehicles has also been lowered, its effect on effective duty rates remains unclear.

In the Union Budget for 2025-26, the government has introduced an Agriculture Infrastructure and Development Cess (AIDC) on the imports of such two-wheelers, whether as CBU, SKD, or CKD units.

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The tax rationalization aims to lower prices compared to prior rates.

This initiative is perceived as an attempt by the Indian government to create a fair competitive environment for international manufacturers by decreasing tariff barriers in sectors where India has a robust supply chain, as stated by Saurabh Agarwal, Partner & Automotive Tax Leader at EY, in an interview with The Hindu BusinessLine.

The Trump Influence: ‘America First’ Trade Policy

This decision is interpreted as a significant signal to the new US administration under Trump. The previous US President’s administration consistently advocated for the reduction of trade barriers, especially concerning products made in the United States.

Prior to this, Trump highlighted that India imposed the highest tariffs on foreign products among major economies and even threatened to apply reciprocal tariffs on Indian goods.

The Trump administration’s ongoing push for reduced trade barriers is notable. Reuters/File Photo

“One of the most critical elements of my plan to revitalize the American economy is reciprocity. It’s vital because we usually don’t impose tariffs. I initiated that process with vehicles like vans and small trucks, etc. While we don’t impose high tariffs, China has a 200 percent tariff, and Brazil imposes significant charges. India ranks as one of the highest,” Trump stated in a notable economic policy address.

In an interview with CBS News, Trump expressed, “We are not the naïve country that suffers as poorly. India is a close friend of mine, Prime Minister (Narendra) Modi, has implemented a 100 percent tax on motorcycles. We don’t charge them a penny.”

“Thus, when Harley exports there, they face a 100 percent duty. Conversely, when they import into India, there are no taxes. I informed him it is unacceptable,” he added.

“Through one phone call, he (Modi) reduced it by 50 percent. Yet, I still find it unacceptable because 50 percent against nothing still poses an issue. They are currently addressing this,” he further mentioned.

In December of the previous year, Trump clarified that his administration would adopt a tit-for-tat stance, saying, “If they impose taxes on us, we will impose the same on them.”

“Reciprocity is crucial, as it raises the question: If India levies a 100 percent tax, why shouldn’t we charge them proportionately? They send us bicycles, and we send them bicycles. They impose significant duties, while we do not,” he said.

Trump’s view aligns with his “America First” trade policy, focusing on safeguarding American workers and families. In his inauguration speech, he proclaimed that his policies would reinstate the US as a manufacturing power.

It’s important to note that Trump has also hinted at the possibility of imposing 100% tariffs on BRICS countries, including India, should they attempt to steer away from utilizing the US dollar. The BRICS group comprises ten nations: Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the UAE.

External Affairs Minister S Jaishankar clarified in December that India has never favored de-dollarisation and that no proposals exist for a BRICS currency.

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Other Possible Customs Duty Reductions in India

India’s strategic focus is on fostering domestic manufacturing.

As reported by News18, the government is contemplating customs duty cuts on approximately seven to eight premium products, including specialized steel, high-end motorcycles, and electronic devices.

With the new reductions, affordability of Harley-Davidson motorcycles in India is expected to improve. Reuters/File Photo

The duty on luxury vehicles priced over $40,000 has been decreased from 125% to 70%, including models like station wagons and racecars, as reported by NDTV Profit.

At present, the Harley-Davidson 440X—the smallest model in their line— is being co-manufactured and sold in India by Hero MotoCorp. The company has recorded sales of 12,188 units of both the Harley-Davidson X440 and the X440-based Hero Mavrick 440 from April to December 2024.

With contributions from various agencies

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Harley Davidson News

India Takes Steps to Protect Itself from Potential Trump Tariffs

India Takes Steps to Protect Itself from Potential Trump Tariffs

 

New Delhi: India has initiated an extensive analysis by sector, developing multiple scenarios to brace for a potential increase in tariffs on goods exported to the United States during the Donald Trump administration, according to various sources familiar with the situation. “Different ministries and departments are evaluating a range of scenarios in anticipation of such a move by the US and exploring possible countermeasures,” one source stated.Also Read: Trump’s stark warning to India risks significant consequences

President-elect Trump stated on Tuesday that the US would introduce reciprocal tariffs on Indian products due to the high tariffs imposed by New Delhi on American goods. Experts suggest that India might need to reassess its import duties on specific items and could offer increased market access for certain American imports to alleviate Trump’s concerns.

Previously, the US has raised concerns regarding the high import duties on Harley Davidson motorcycles, as well as limited access for medical devices, equipment, and dairy products in India.

Addressing US Concerns

Officials assert that India’s most favoured nation (MFN)-weighted average import tariff is relatively low, approximately 5-6%. While select agricultural products encounter higher tariffs, even those are significantly lower than the rates outlined by the World Trade Organization (WTO). They note that most countries, including the US, apply elevated tariffs and various non-tariff barriers on agricultural goods. For instance, dairy products, fruits and vegetables, cereals, food preparations, and oils in the US face tariffs as steep as 130-190%.

One insider mentioned that any thorough evaluation of the impact or necessary measures can only occur after the Trump administration officially takes over on January 20.

Experts suggest that New Delhi has the option to impose retaliatory tariffs or approach the WTO while advocating for a strategic response.

“It makes sense to reconsider certain products for tariff adjustments to address US concerns,” remarked one expert who preferred to remain anonymous due to the sensitive nature of the issue. While tariffs are bound by WTO commitments or linked to MFN status rather than being country-specific, there is an opinion that a measured approach could be taken when evaluating the product list traded between India and the US.

India Takes Steps to Protect Itself from Potential Trump Tariffs“It is unfeasible for India to implement country-specific tariffs, as that would violate the most-favoured nation (MFN) principle,” stated Ajay Sahai, director general of the Federation of Indian Export Organisations (FIEO).

Tariff Review

Sahai believes that India can revisit certain tariff lines and strategize accordingly, even if it results in a slight duty loss on some products.

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