PM Narendra Modi with US President Donald Trump (File Image)
Photo: PTI
New Delhi: In preparation for Prime Minister Narendra Modi‘s upcoming talks with US President Donald Trump during his visit to the US, India is reportedly considering further duty reductions to promote American exports, according to Reuters, which cited government sources. Additionally, New Delhi might reference recent tax reductions on American imports as a strategy to bypass tariffs.
PM Modi is scheduled to visit the United States on February 12-13 to meet with President Trump. Before this meeting, India is contemplating tariff adjustments, although there has been no official confirmation as of yet.
In the coming days, it is anticipated that India may implement custom duty reductions across a variety of sectors, including electronics, surgical and medical equipment, and certain chemicals, as reported by Reuters.
These adjustments are aimed at items for which India often relies on US imports and could feasibly acquire more from the United States, such as dish antennas and wood pulp.
Moreover, it has been suggested that India might leverage recent duty cuts to evade Trump tariffs, as indicated in a report by the Times of India. Trump’s economic adviser, Kevin Hassett, pointed out India’s high tariffs, which hinder imports, and noted that Prime Minister Modi had significant discussions planned with President Trump during their upcoming meeting.
India Reduces Custom Duty on American Goods
In the latest Union Budget, India announced reductions in customs duties for motorcycles, including those made by Harley Davidson, as well as on synthetic flavoring essences. This duty reduction is expected to favor American exporters directly.
The tariff on motorcycles with engine sizes below 1,600cc has been decreased from 50% to 40%, while for those exceeding 1,600cc, it has been lowered from 50% to 30%.
India has cut the duty on fish hydrolysate used for aquatic feed production from 15% to 5%, a change that significantly affects US exports, valued at $35 million in 2023-24.
Additionally, the customs duty on synthetic flavoring essences has been reduced from 100% to 20%, corresponding to US exports worth $21 million in FY24.
The Global Trade Research Initiative (GTRI) remarked that despite the Trump administration’s frequent criticisms labeling India as the biggest tariff offender, the recent Budget has introduced notable tariff cuts across various products that benefit US exports.
“With major tariff reductions on technology, vehicles, industrial inputs, and waste imports, India seems to be making efforts to facilitate trade even amidst a strained global trading environment. It remains to be seen if these reductions will influence Washington’s perspective on India’s trade policies or become a contentious issue in the US election cycle,” the GTRI noted.
In December of the previous year, US President Donald Trump mentioned that India imposes “high” tariffs, emphasizing his plan to enforce reciprocal tariffs in response to the taxes New Delhi places on certain American imports. With Trump back in the White House, the prospect of tariffs casts a shadow over India. The US ranks as India’s largest trading partner, with India enjoying a trade surplus. In 2023-24, India’s exports amounted to $77.51 billion compared to $42.2 billion in imports during the last fiscal year. From April to December of this fiscal year, India’s exports to the US increased by 5.57% to approximately $60 billion, while imports rose by about 2% to $33.4 billion. Historically, the US has highlighted concerns over high import duties on Harley Davidson bikes and limited access to medical devices, equipment, and dairy products in India.
Following Trump’s election victory last November, India initiated a comprehensive sector-wise assessment, devising multiple scenarios to brace for potential tariff hikes on exports to the US under Trump’s administration, as reported by ET in December.
India’s prospects under the Trump administration Trump’s memorandum titled “America First Trade Policy,” released on his first day in office, could present an opportunity for India. The memo instructed the United States Trade Representative (USTR) to pinpoint countries to engage in trade agreements, either bilaterally or within specific sectors, to enhance export access for various American entities. The Indian government is currently reviewing the memo. “We are analyzing the memo and assessing its implications before creating any strategy… At this stage, based on an initial reading, I don’t see anything overly concerning. Our evaluations have yet to materialize into action,” officials informed PTI. The government is also waiting for the official confirmation of the key trade positions in the US.
Indian and US diplomats aim to organize a meeting between Prime Minister Narendra Modi and Trump in Washington in February, according to sources who spoke to Reuters. However, the likelihood of a February meeting remains uncertain. There is a possibility for a bilateral discussion later in the year, especially when the Quad leaders—comprising India, Australia, Japan, and the US—reconvene at an annual summit hosted by India.
Indian officials are contemplating a limited trade agreement with the US within one scenario, according to Bloomberg sources. The proposed plan would involve lowering certain “most-favored nation” tariffs imposed on countries with which India lacks a bilateral trade deal.
Last month, Reuters reported that India is gearing up to propose tariff reductions on certain agricultural and other goods primarily imported from the US, aiming for a more extensive trade and investment deal once Trump assumes office. To address Trump’s proposal of a “reciprocal tax” on Indian goods due to high tariffs, some officials from the Indian commerce ministry are contemplating reductions on specific items like pork, as revealed by a senior government source. Currently, India enforces a 45% import tariff on pork, predominantly sourced from the US. Additionally, tariffs could see reductions on premium medical devices such as pacemakers and luxury motorcycles like Harley Davidson, according to an official with direct knowledge of trade matters, who cited existing tariffs ranging from 25% to 60% on those products. To alleviate Trump’s concerns regarding the trade deficit, officials have also suggested increasing purchases of LNG and defense equipment from the US, as reported by Reuters.
“This presents an opportunity,” noted Arvind Virmani, a government advisor and member of the state-run policy think tank NITI Aayog, speaking to Reuters. “Both the US and India would benefit from shifting more critical and sensitive manufacturing to India rather than relying on China,” he added, suggesting a more ambitious “preferential trade cum investment deal” than the previously discussed mini-trade agreement, which could be mutually beneficial for both nations.
Restarting India-US discussions from a prior standpoint During Trump’s initial term, a proposed mini-trade agreement aimed at addressing trade discrepancies and enhancing trade relations through limited deals stalled due to disagreements over tariffs, access to markets, and intellectual property. The Biden administration similarly is not keen on a free trade agreement. India now seeks a broader agreement, as reported by Reuters, offering substantial concessions such as production-linked incentives for logistics companies and support for logistics sector.
Kenneth I. Juster, a distinguished fellow at the Council on Foreign Relations, and Mark Linscott, a senior advisor at the U.S.-India Strategic Partnership Forum and the Asia Group, expressed in ‘Foreign Policy’ that this time around, Modi and Trump should take advantage of the opportunity to forge a significant bilateral agreement.
They noted that although US-India economic relations have consistently advanced throughout the 21st century, they have not met expectations in comparison to the remarkable progress made in nearly every other aspect of the bilateral partnership. “However, there are grounds for optimism. Trump enjoys negotiating deals and is eager to enhance the US economy. His tariffs may serve as leverage to unlock foreign markets for US companies, creating jobs related to exports and reducing the bilateral trade deficit. Modi is a strategic thinker focused on fostering India’s economy and expanding its international role,” they stated.
“Both the United States and India aim to strengthen their economic influence in the Indo-Pacific region and mitigate China’s economic dominance. The moment is opportune, and the incentives exist for both leaders to overcome challenges and finalize a major agreement.” (With contributions from agencies)
On October 11, 2017, President Donald Trump and Canadian Prime Minister Justin Trudeau smiled for a photo during Trudeau’s White House visit. (AP Photo/Carolyn Kaster, File)
In a statement on Sunday, outgoing Prime Minister Justin Trudeau of Canada indicated that President-elect Donald Trump’s comments about Canada potentially becoming the “51st state” have diverted focus away from the detrimental effects that significant tariffs would have on U.S. consumers.
“Canada becoming the 51st state isn’t going to happen,” Trudeau mentioned in an MSNBC interview. “Yet, discussions are centered around that, rather than the consequences of a 25% tariff (on) steel and aluminum entering the U.S.”
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Trudeau further stated on MSNBC: “No U.S. citizen wants to incur a 25% increase in costs for electricity or oil and gas from Canada, which is a matter that I believe requires greater consideration.”
Trump has claimed that merging Canada with the U.S. would lead to lower taxes and eliminate tariffs.
Furthermore, Trump has inaccurately referred to the U.S. trade deficit with Canada—a country rich in natural resources that supplies oil and other commodities—as being a subsidy.
During Trump’s initial term, Canada retaliated against Trump’s tariffs on Canadian steel and aluminum with its own tariffs on U.S.-produced items like bourbon, Harley Davidson motorcycles, and playing cards.
“He was elected to enhance the lives of all Americans and to support American labor,” Trudeau expressed regarding Trump. “These (tariffs) are measures that will ultimately harm them.”
Last week, Trump stated that the U.S. does not rely on Canada for oil or other resources. However, approximately 25% of the daily oil consumption in the U.S. is sourced from Canada. The energy-abundant province of Alberta supplies around 4.3 million barrels of oil to the U.S. each day.
According to the United States Energy Information Administration, while the U.S. consumes 20 million barrels of oil daily, it produces approximately 13.2 million barrels per day.
Canada, a founding member of NATO with a population exceeding 40 million, also serves as the leading export market for 36 U.S. states. Around $2.7 billion worth of goods and services cross the border each day.
Trump has mentioned that he might reconsider his tariff threats if Canada improves its security management at the Canada-U.S. border, which he and his advisors view as a potential pathway for undocumented migrants.
Trudeau asserted that less than 1% of illegal migrants and fentanyl come into the U.S. from Canada.
Following a meeting in November at Mar-a-Lago, Trump’s private property in Florida, Trudeau declared an uptick in funding for border security, showing his willingness to address Trump’s concerns in hopes of appeasing him regarding the tariff threats.
President Donald Trump and Canadian Prime Minister Justin Trudeau captured at the White House on Oct. 11, 2017. (AP Photo/Carolyn Kaster, File)
On Sunday, Canada’s outgoing Prime Minister Justin Trudeau mentioned that President-elect Donald Trump’s comments about Canada potentially becoming the “51st state” have diverted focus from the significant impact that high tariffs would have on American consumers.
“The 51st state, that’s not on the table,” Trudeau stated in an MSNBC interview. “Yet, the conversation has shifted from discussing the real effects of a 25% tariff on steel and aluminum imports to entertainment about statehood.”
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Trudeau emphasized: “No American citizen wants to see a 25% hike in costs for electricity or oil and gas from Canada. This is an important topic that needs more attention.”
Trump has claimed that should Canada become part of the U.S., taxes would decrease and tariffs would be eliminated.
Additionally, Trump has inaccurately labeled the U.S. trade deficit with Canada, a resource-rich neighbor supplying the U.S. with commodities such as oil, as a form of subsidy.
During Trump’s first term, in response to tariffs on Canadian steel and aluminum, Canada imposed its own tariffs on American goods including bourbon, Harley Davidson motorcycles, and playing cards.
“He was elected to make life easier for all Americans and support American workers,” Trudeau said of Trump. “However, these (tariffs) will ultimately harm them.”
Last week, Trump stated that the U.S. doesn’t require oil or any other resources from Canada. However, approximately 25% of the oil the U.S. consumes daily is sourced from Canada, with Alberta exporting 4.3 million barrels of oil per day to the U.S.
Data from the U.S. Energy Information Administration indicates that the nation consumes about 20 million barrels of oil daily, while producing around 13.2 million barrels.
Canada, as a founding NATO member with a population exceeding 40 million, stands as the leading export market for 36 U.S. states. Every day, nearly $2.7 billion in goods and services are traded across the border.
Trump has expressed that he would reconsider his tariff threats if Canada improved its border security management, which he and his team view as a potential access point for undocumented migrants.
Trudeau asserted that less than 1% of illegal immigrants and fentanyl entering the U.S. are from Canada.
Following a meeting with Trump last November at Mar-a-Lago, the president-elect’s Florida residence, Trudeau announced an intention to boost border security funding, hoping to address Trump’s concerns to dissuade a tariff imposition.
Today, we have an exciting range of updates from various sectors of the Powersports industry:
CCM is gearing up for a global launch into new markets.
Yamaha is working on a V4 engine: Learn about its anticipated launch and the implications for future models in Yamaha’s lineup.
Harley-Davidson has lost a significant lawsuit and will be subject to a staggering 56% tax on HD motorcycle sales in Europe.
Ducati has capped its production at 200,000 units per year, and now we know the reason behind it.
Let’s kick things off with CCM, especially since that Harley lawsuit is quite the hot topic…
CCM Unveils Plans for International Expansion
A view of a CCM motorcycle. Media sourced from CCM.
…Featuring a “Three-Year Model Plan”
The last significant update on CCM was back in 2022 when they unveiled a titanium-framed Spitfire for their Golden Anniversary. Currently, it seems Clews’ Competition Motorcycles is keen to emulate Buell’s success, as they’ve recently announced ambitions for international growth, with their Managing Director sharing:
“In three years, we will definitely have new products and be present in multiple international markets. That’s our ultimate aim.”
It appears that CCM recognizes that its current 600cc engine does not meet Euro5+ standards and considers achieving compliance a “complex and challenging process.”
Currently, CCM utilizes the Motorcycle Single Vehicle Approval (MSVA) process to sell bikes in the UK. This lengthy process requires a thorough inspection from a DVSA examiner, which has limited CCM’s market reach (hence the company’s desire to innovate for its clientele).
The “new” offerings are expected to include a revamped engine within two years and the upcoming “Project X,” an adventure concept featuring their existing engine planned for a debut around Q2 next year (2025).
For those curious, the road-ready version of Project X is projected to be priced around £13,995 plus OTR. Specs will likely feature retro Dakar rally designs, including spoked wheels, a sizeable fuel tank, and a compact head fairing, complemented by a USD fork and long-travel rear suspension.
CCM expects this new adventure bike line to absorb about 50% of their production capabilities, with estimates of around 300 units per year, although this could increase as discussions of international market entry progress.
“An adventure bike fills a critical gap for us over the next two years. During this timeframe, we’ll launch a new product with a new engine and chassis, followed by an 18-month homologation period.”
Broome’s pragmatic approach offers realistic timelines and expectations for model success, especially considering the inherent risks associated with international expansion:
“We prefer not to set numeric limits because we don’t want to overpromise and underdeliver. Our production capacity for CCM bikes is about 300 per year, and we anticipate that about 50% of this will be allocated to the new model due to the resource demands.”
Would you like to see CCM’s single-cylinder Spitfire available in the U.S.?
Yamaha Sets the Stage for V4 Engine in MotoGP
Quartararo on Yamaha’s 2023 YZF-R1. Media sourced from GPOne.
Inline-Four Replacement Expected by 2025
The journey of a motorcycle typically includes various iterations, tweaks, and upgrades until inevitably it falls from favor or is withdrawn from the market due to economic challenges, regulatory shifts, or emissions demands.
Such is the fate of Yamaha’s R1, once touted as one of the finest supersport motorcycles ever created. While R1 enthusiasts continue to embrace it on the racetrack, markets lament the loss of the signature inline-four roar echoing on the country roads.
For those missing that sound, we bring you exciting developments around Yamaha’s potential inline-four replacement: a V4 engine poised for its debut on the MotoGP circuit.
Discussion surrounding this engine has circulated widely, but let’s rely on insights from Alex Rins (sourced from Visordown) for credible information:
Currently, Yamaha stands as the only manufacturer in MotoGP utilizing an inline-four engine.
The switch to a V4 configuration aims to enhance Yamaha’s competitive edge against rivals like Ducati, Aprilia, and KTM, who successfully employ similar engines.
Yamaha has recruited an array of talent, including engineers and technicians from Ducati, to fortify their MotoGP team.
Leading F1 engine consultant (Luca Morini), formerly associated with Aprilia, is among the new faces advocating for the transition to V4 power.
The unveiling of the new V4 engine was scheduled for Jerez but was delayed.
The V4 is now expected to make its first appearance at the Sepang Shakedown test in February 2025.
There’s a strong belief that this V4 engine will eventually lead to a street-ready bike capable of approximately 800cc’s. Transitioning from MotoGP to production often takes three to six years or more, so only time will reveal Yamaha’s production plans for the evolving V4.
How do you think Yamaha’s V4 will stack up against the previous inline-four?
Tariff Tribulations: Why Harley-Davidson Lost the Massive EU Lawsuit
Harley-Davidson’s 2024 Road Glide Limited. Media sourced from Harley-Davidson.
…And Why America’s Iconic Motorcycle Brand is Set for Price Hikes in Europe
“… relocating production to avoid punitive tariffs is unacceptable [and] such actions are clearly illegal under European law (Customs Code Article 59, and Implementation Act of 2015, Article 33).”
– Bernd Lange, European Union Trade Committee Chairman (RideApart)
Despite Harley-Davidson’s press release claims, we now know that, as of early December, the European Court of Justice is not permitting any company “to evade additional duties unless relocation is economically justified.”
With Harley’s recent attempt to offshore production to Thailand seen as unjustified, the company will now face a staggering +56% tax on each motorcycle they import into Europe.
“In June 2018, the Trump Administration imposed additional import tariffs of 25% on steel and 10% on aluminum. In response, the EU implemented countermeasures, including increased duties on motorcycles of US origin. According to a Form 8-K, Harley Davidson announced it would shift production of certain motorcycles destined for the EU from the US to its manufacturing facility in Thailand. This relocation was intended to grant the motorcycles Thai origin, exempting them from additional EU duties. Belgian customs authorities confirmed this with a binding origin information (BOI). However, the European Commission ordered Belgian customs to revoke the BOIs, stating that the relocation doesn’t grant Thai origin due to “anti-avoidance” measures outlined in Article 33 of the Delegated Act of the Union Customs Code (DA UCC).
According to Article 33 DA UCC, any processing or operations carried out in another country shall be deemed not to be economically justified if established based on available facts that the operation aimed to avoid additional import duties. Thus, the production fails to confer origin status, with additional duties on US motorcycles potentially still imposed based on the materials used.
Harley Davidson sought annulment of the decision to revoke the BOI, initially at the General Court and now on appeal at the Court of Justice. Following the General Court’s decision, the Court of Justice has dismissed the claim.”
The official appeal dismissal stated that Harley-Davidson failed to prove sufficient economic justification for their attempted production shift to Thailand, leading the EU Court of Justice to uphold the European Commission’s decision to deny Harley-Davidson’s request for lower tariffs.
Reports indicate that the General Court of the ECJ has also decided not to hear an appeal, making Harley’s unfortunate outcome final.
No reversing this means Harley bikes are on track to become very costly for our friends across the Atlantic. We’ll keep you updated on what this means for Harley-Davidson motorcycles heading to Europe; in the meantime, stay tuned… and don’t overlook your HOG, Americans!
What is the cost of riding a Harley bike in the EU?
Industry Insight: Why Ducati Capped Sales Below 200,000 Units Annually
A view of a Ducati Panigale V4. Media sourced from Ducati.
“The Message to Those Who See You Must Be Clear”
In a market where abundance reigns, Ducati champions the idea that exclusivity is paramount—especially for a prestigious motorcycle manufacturer.
Ducati’s longstanding CEO, Claudio Domenicali, shared his philosophy with MotoSprint:
“I prefer to think of us as a brand that doesn’t just produce motorcycles, but sells to the ‘Ducatisti’. Therefore, we cannot sell 200,000 motorcycles a year.
Other manufacturers have smaller bikes, but our entry-level model, the Monster, is 937cc.”
This ethos has benefitted Ducati, as they maintain hundreds of millions in sales, enabling them to support numerous specialized events, emphasizing what it means to be a “Ducatisti.”
For the Ducati brand, the power of restraint plays a critical role in market perception:
“It’s critical not only what a brand does, but what it refrains from doing to preserve its market position. Arriving atop a Ducati should convey a clear message.”
Recently, Ducati unveiled their 2025 Panigale V4, boasting the legendary Desmosedici Stradale V4 engine, delivering a robust 1,158cc of raw power, approximately 215.5 hp (160 kW) @ 13,000 rpm with torque ratings reaching 93.7 lb-ft (127 Nm) @ 9,500 rpm.
Congratulations to Ducati, and we eagerly anticipate what comes next!
