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Government Reduces Duty on Bourbon and Certain Wines in Response to US Threat | India News

Government Reduces Duty on Bourbon and Certain Wines in Response to US Threat | India News

NEW DELHI: In response to pressure from the United States, the government has reduced the import duty on bourbon whiskey from 150% to 100% and has also lowered tariffs on various wines.
The duty on wines made from fresh grapes, vermouth, and other fermented drinks as well as unadulterated ethyl alcohol with an alcohol content of 80% has been set to 100%. Together, the import of these items totaled approximately $1 billion in the last fiscal year.
For bourbon, the basic customs duty is now established at 50%, with an additional agricultural cess of 50%. Last year, imports for the two categories related to bourbon were estimated at $2.6 million, with $0.8 million coming from the US.
The duty reductions were announced on Thursday, just hours prior to Prime Minister Narendra Modi’s meeting with US President Donald Trump, during which tariffs were a key topic of discussion. Trump reaffirmed his intention to implement what he described as reciprocal tariffs to support American industries. Before meeting Modi, he highlighted that India has some of the highest tariffs globally.
India’s tariffs on whiskey and other alcoholic beverages have raised concerns among various countries, including Australia, the UK, the European Union, Switzerland, and the US. Although India has reduced tariffs on Australian wine under a trade agreement, the UK has been pressing for lower levies on Scotch whisky as part of trade negotiations, while the EU has been advocating for cuts on wines produced within the bloc.
In the Budget presented on February 1, the government had already decreased import duties on a range of products, including premium motorcycles like the iconic Harley Davidson, in an effort to ease tariff pressures. However, this move has not prevented Trump from voicing concerns about duties in India, using Harley Davidson as an example during media interactions.

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India Reduces Import Tariffs on U.S. Motorcycles and Cars, Benefiting Harley and Tesla



India Reduces Import Tariffs on U.S. Motorcycles and Cars, Benefiting Harley and Tesla
US President Donald Trump embraces Indian Prime Minister Narendra Modi during the “Namaste Trump” event at Sardar Patel Gujarat Stadium in Ahmedabad, India, on February 24, 2020. — Reuters

NEW DELHI: In its Union Budget for 2025-26, India has substantially reduced customs duties on premium motorcycles, cars, and smartphone components. This development appears advantageous for American companies such as Harley-Davidson, Tesla, and Apple, following remarks by US President Donald Trump describing New Delhi as a “tremendous tariff maker.”

Nonetheless, Finance Minister Nirmala Sitharaman stated that the adjustment of customs duties is aimed at promoting self-reliance within the Indian economy and is not a reaction to Trump’s tariff announcements.

“We are focusing on our own economy and aiming to fortify the foundations of the Indian economy to transform it into a manufacturing hub,” she asserted.

During her budget presentation on Saturday, Ms. Sitharaman disclosed a reduction in import duties for high-end motorcycles, with engine capacities up to 1,600cc imported as completely built-up (CBU) units, from 50 per cent to 40 per cent.

According to the Union Budget for 2025-26, the import duty on semi-knocked down (SKD) kits has decreased to 20 per cent from 25 per cent. Furthermore, completely knocked down (CKD) units will now incur a tax of 10 per cent, down from 15 per cent.

This shift is set to enhance the import of quintessentially American Harley-Davidson motorcycles into India, as the previous high tariffs have been a longstanding issue between India and the US.

Harley-Davidson began its journey in India in 2010, following the “mangoes for motorcycles” agreement established between India and the US in 2007. However, the American motorcycle manufacturer withdrew from the Indian market about ten years later, in September 2020, as part of broader downsizing efforts.

Nonetheless, a month later, Harley-Davidson re-entered the Indian market after Hero MotoCorp Ltd formed a non-equity partnership with the American brand to manufacture and distribute its motorcycles in India. Currently, Hero MotoCorp produces and sells the Harley-Davidson 440X, the smallest model in the brand’s lineup.

During his first term in office, Trump raised concerns regarding the 50 per cent import duty on Harley Davidson motorcycles, deeming it “unacceptable.”

Separately, Ms. Sitharaman announced that the tariff on luxury cars, including station wagons and racecars valued over $40,000, has been reduced from 125 per cent to 70 per cent. Additionally, the basic customs duties on lithium-ion batteries used in electric vehicles in India have been eliminated.

Most of the aforementioned EV manufacturers are already operational in India, developing vehicles tailored for the Indian market. However, this move could serve as a lure for American companies like Tesla, which is keenly observing the expanding Indian EV landscape.

In April 2024, Tesla CEO Elon Musk planned a visit to India to meet PM Modi, fueling speculation about potential investments in the country. However, he canceled the trip due to “very heavy Tesla obligations.”

In the 2025-26 budget, Ms. Sitharaman confirmed that customs duties on 28 items related to mobile phone battery production from countries such as the US and China have been waived. This initiative aims to lower the cost of mobile phones and accessories in India while bolstering local production, particularly as India progresses towards becoming the world’s second-largest mobile phone manufacturer.

Apple stands to gain significantly from these reductions in import taxes. A report from Reuters indicates that Apple secured a 23 per cent share of total revenue in 2024.

As US President Trump advocates for prioritizing domestic industry under his “America First” trade policy, India’s recent adjustments to import taxes are perceived as a strong signal to the American administration, seeking assurance against increased taxes or additional trade barriers directed at Indian goods.

Previously, Trump asserted that India imposes the highest tariffs on foreign items compared to major economies and threatened to enforce reciprocal tariffs on Indian products. He also warned of 100% tariffs on BRICS nations, including India, if they moved away from the US dollar.

Speculation arises that with the tax reductions on imports, India aims to capitalize on the US-China trade conflict and augment its own presence in global supply chains. Trump’s tariffs are becoming disruptive to global trade, creating uncertainty in the market. With the import tax reductions, India should be better positioned to navigate a potentially unpredictable year, as reported by Reuters.

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India Reduces Import Duty on High-Capacity Motorcycles: A Boost for Harley Davidson and Other US Brands

India Reduces Import Duty on High-Capacity Motorcycles: A Boost for Harley Davidson and Other US Brands

In a promising move for the new US administration under President Donald Trump, India has reduced the import duty on high-capacity motorcycles in the Union Budget 2025-26, providing a significant advantage for the American brand Harley-Davidson.

Motorcycles with an engine capacity of up to 1,600 cc, imported as completely built-up (CBU) units, will now incur a 40% import duty, down from the previous 50%, as outlined in the Budget documentation.

The import duty on semi-knocked down (SKD) kits has been lowered to 20%, from 25% previously.

For completely knocked down (CKD) units, the tax rate will be set at 10%, reduced from 15% earlier.

The government’s objective is to encourage domestic manufacturing.

Reports also indicate that India is considering a reduction in customs duty on approximately seven to eight high-end products, including specialized steel, luxury motorcycles, and electronic goods.

Currently, the Harley-Davidson 440X – the smallest model in the brand’s lineup – is co-manufactured and sold in India by Hero MotoCorp.

Additionally, the Budget specified that high-end cars priced over $40,000 will now face a tariff of 70%, down from 125%, reflecting the increasing demand for luxury vehicles in the country.

Hero MotoCorp, which produces the Harley-Davidson X440 and the X440-based Hero Mavrick 440, reported sales of 12,188 units for these two models during the April-December 2024 timeframe.

This marks a year-on-year growth of 77%, giving Hero MotoCorp a 13% share of this market segment.

The Made-in-India Harley-Davidson is manufactured at Hero’s Garden Factory in Neemrana, Rajasthan.

It is available in three variants – Denim (₹2.40 lakh), Vivid (₹2.60 lakh), and S (₹2.80 lakh) – with 8,974 units sold between April and December 2024, representing a 31% increase according to industry data.

(This content was sourced from a syndicated feed and only edited for style by the Gujarat Samachar Digital team)

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NY Judge Reduces Damages by $209 Million in Harley-Davidson Fatality Lawsuit

In August, a jury in Geneseo delivered a stunning blow to Harley-Davidson by awarding nearly $288 million in damages after determining that a defective motorcycle led to an accident that resulted in the death of a woman and severe injuries to her partner.

A jury in Livingston County found Harley-Davidson liable for the death of Pamela SinClair and the injuries sustained by Harold Morris, awarding a total of $287 million in damages to them.

Recently, however, the awarded sum was drastically reduced—by over $209 million—by the State Supreme Court judge who oversaw the trial.

Justice Craig J. Doran declined Harley’s request to dismiss the entire verdict but acknowledged in a decision shared with The Buffalo News that the jury’s damages were excessively high.

Evidence presented during the trial indicated that Harley “understood there was a defect” linked to a June 2020 incident that resulted in the death of Pamela SinClair from Batavia and the severe injury of her partner, Howard Morris, as ruled by Doran.

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The judge stated that Morris and the SinClair family are still entitled to receive a total of $79 million. However, until all appeals are resolved— which may take months or years—plaintiffs will not receive any funds, as per their attorneys.







Harold Morris and attorney Paul Edelstein (copy)

Harold Morris, left, and his attorney, Paul Edelstein, during a news conference in Geneseo, on Aug. 13, 2024, following the jury’s decision to order Harley-Davidson to compensate Morris and SinClair’s estate $287 million due to a June 6, 2020, incident involving Morris’s Harley-Davidson three-wheeler that claimed SinClair’s life.





At the time of the crash, Morris, aged 79, was operating a three-wheeler Harley, with 62-year-old SinClair as his passenger when the vehicle went off the road and crashed in Hamlin Township, PA, approximately 35 miles southeast of Olean.

“The trial evidence confirmed that Harley-Davidson marketed a product with error codes, aware of a defect related to the rear wheel speed sensor that caused an unexpected change in direction and was cognizant of a traction control problem…yet failed to withdraw the product from the market,” Doran noted.

However, the judge sided with Harley’s defense lawyers who argued that the financial awards from the jury—including $240 million in punitive damages—were unjustified and overly punitive.

The jurors initially granted $120 million each in punitive damages to Morris and SinClair’s family. Doran later reduced these amounts to $40 million for Morris and $24 million for SinClair’s family.

Jurors also allotted $36 million to Morris for pain, suffering, and medical costs; the judge cut this figure to $10 million.

Similarly, the SinClair family was granted $12 million for their pain and suffering, which the judge reduced to $4.85 million.

Harley’s corporate spokesman in Milwaukee and attorney Mark A. Kircher, who led the company’s legal representation during the trial, did not respond to inquiries made by The News.







Harold Morris' Harley-Davidson trike

Harold Morris’s Harley-Davidson three-wheeler motorcycle following the crash on June 6, 2020, in Pennsylvania, which led to serious injuries for Morris and the tragic death of his girlfriend, Pamela SinClair.






The motorcycle manufacturer has submitted an appeal notice to the court.

“All I can tell you is that Harley-Davidson respectfully disagrees with the verdict and intends to appeal,” Kircher stated to The News in August.

Throughout the trial, Harley’s defense claims denied that any vehicle defects played a role in the accident, instead questioning Morris’s driving skills.

Morris expressed his “frustration and disappointment” regarding the judge’s decision to reduce the jury’s financial awards, according to his attorney, Paul J. Edelstein.

“Howard is extremely frustrated with the laws in New York state. The judge followed the state law’s standards,” Edelstein shared. “Harley has initiated an appeal, making the timeline uncertain, and hopefully it won’t take years. The lawyers at Harley know my client is elderly, making time a crucial factor against him in this case.”

There remains the possibility of a settlement between Harley and the plaintiffs, which would negate the need for extended legal disputes, Edelstein added.

Daniel A. Thomas, representing the SinClair estate, conveyed understanding of the judge’s rationale in adjusting the awards.

“But I also feel that the trial was equitable, and the jury’s decision should stand without being altered,” Thomas mentioned to The News.

Despite the more than $200 million reduction, “I still believe this is a substantial amount that conveys a strong message to Harley-Davidson,” Thomas remarked.

It is common for judges to revise the damages awarded by juries when they have determined the amounts were excessively high.

A recent case involved acting State Supreme Court Justice Mark J. Grisanti who lowered a jury’s $100 million verdict for the family of Richard Metcalf Jr., an inmate who died in 2012 in the Erie County Holding Center, down to $20 million after defense arguments highlighted the initial amount as “excessive.”

Founded in Milwaukee in 1903, Harley-Davidson is one of the most recognized motorcycle brands worldwide, and they vigorously defended their reputation during the trial.

Morris is a former president of the Harley Owners Group, commonly referred to as HOGS, in Batavia. He indicated his passion for riding Harleys for many years, frequently traveling with SinClair across the United States. They both resided in the Town of Caledonia, around 17 miles east of Batavia.

“We were aware of the challenges ahead. People have enormous faith and trust in this brand, to the extent that some even tattoo the Harley-Davidson logo on their bodies,” Thomas said.







Harold Morris and his girlfriend Pamela SinClair

Harold Morris and his girlfriend Pamela SinClair in an undated family photograph. Morris suffered severe injuries while SinClair tragically lost her life during a June 6, 2020, accident involving Morris’s Harley-Davidson three-wheeler motorcycle. A jury in Geneseo awarded significant damages in a product liability trial.






Records indicate that both Morris and SinClair encountered two separate injury incidents while riding Harley three-wheelers. They sustained injuries in 2019 when one of their cycle’s rear wheels abruptly engaged the brakes, causing the vehicle to spin and crash into a wooded area in Florida, as detailed in court documents.

“We were riding on a straight, clear highway when the bike unexpectedly veered left. We left the road, and the Harley flipped over, throwing us off,” Morris recounted to The News. “Pam sustained a broken hand and ankle.”

Shortly after the Florida accident, Morris received a recall notice from Harley regarding the traction control software for the three-wheeler, according to the attorneys representing Morris and the SinClair estate.

“The recall was initiated after numerous complaints from Harley customers nationwide concerning similar issues with their trikes’ software. Mr. Morris took the vehicle in for servicing and was assured by Harley that it was safe to ride. Just months later, the fatal accident transpired,” the plaintiffs’ attorneys stated.

During the trial, Morris testified that he could not recall any details regarding the accident that led to SinClair’s death in June 2020. His memories only returned after 10 weeks of medical and rehabilitation treatment.

“I was in a rehabilitation facility when they informed me of Pam’s death,” Morris told The News in August. “I was in shock.”

Throughout the trial, Harley’s legal team raised several questions about Morris’s motorcycle driving skills. Kircher pointed out that while Morris was an experienced two-wheeled motorcycle rider, he was “relatively new” to operating three-wheelers when the two incidents occurred.

Controlling a three-wheeled Harley differs significantly from a two-wheeler, Kircher explained to the jury.

“Rider error is the leading cause of single-vehicle motorcycle accidents,” Kircher told jurors.

“For over four years, Harley-Davidson has insisted that both accidents were solely Harold’s fault, which we knew not to be accurate,” Edelstein stated post-trial.

Jurors concluded that Harley-Davidson was responsible for SinClair’s death and Morris’s injuries. Edelstein and Thomas expressed confidence that the nearly $288 million award ranks among the largest ever given in a product liability case in Western New York.

“One of the primary factors in my decision to purchase the three-wheeler was its advertising as a safer and more stable mode of travel,” Morris said after the jury’s decision.

Thomas mentioned that the SinClair estate is represented by a daughter and grandchild of Pamela SinClair.

As they await further case developments, potentially spanning months or years, the SinClair family and Morris find a silver lining. Thomas noted, “Once the judge finalized the awards on January 10, the judgments started accruing interest at nearly $20,000 per day, with compounding each day, including weekends and holidays, until the litigation concludes.”