
New Delhi:
In its central budget 2025-26, India has significantly reduced the duties of customs on high-end motorcycles, cars and smartphone parts, which seems to show that US companies like Harley Davidson, Tesla and Apple, This increases after US President Donald Trump. New Delhi called as a “great tariff maker”.
However, according to Finance Minister Nirmala Sithaman, the Indian economy was introduced to ensure that it becomes Attamir (self -reliance), and there was no indication during Mr Trump’s announcements.
“We are looking at our economy. We are looking to strengthen the foundation of the Indian economy, to make it a manufacturing center,” he told NDTV’s Sanjay Paglia.
Harley Davidson to be cheaper in India
In her budget speech on Saturday, Ms. Sitaraman announced that import duty on advanced motorcycles, which has the engine capacity of 1,600 cc, as a fully built -up (CBU) unit. Imported, it will see a 10 % reduction. Up to 40 % before 50 %.
According to Union Budget 2025-26, import duty on semi-knock-down (SKD) kits has been 25 % first. In addition, the fully knocking (CKD) units will now be taxed 10 %, compared to 15 % before.
The move will boost the import of US Harley Davidson motorcycles in India.
Harley Davidson enrolled in Indian markets in 2010 as part of a “motorcycle” agreement between India and the United States in 2007. However, the US motorcycle maker came out of India in September 2020 after a decade, cutting as part of its wider additional
But after a month, Moto CarP Limited, after setting up a non -equality partnership with the US brand to make and sell bikes in India, returned to Indian markets. Today, the Hero Moto Corp Harley Davidson makes and sells the smallest motorcycle in the company’s lineup.
During his first term in the White House, Mr Trump raised the issue of 50 % of import duty on Harley Davidson and said it was “unacceptable”.
Move to attract Tesla?
In addition, Ms. Sithaman announced that tariff rates on luxury cars, including station wagons and rescuers, cost more than $ 40,000, before 125 percent to 125 percent to 70 percent. Is He also announced that the basic duties of customs for lithium -ion batteries used for electric vehicles in India have been completely eliminated.
The majority of the above mentioned EV makers are already in India and is producing automobiles for Indian roads. But, the move could be an incentive for US companies like Tesla, who were monitoring the wide and emerging Indian EV market.
In April 2024, Tesla CEO Elon Musk made plans to visit India and meet Prime Minister Modi, which created speculations in the country. However, he canceled the visit due to his “very heavy Tesla responsibilities”.
Apple’s story
In Budget 2025-26, Ms Sitaraman announced that 28 items in the manufacture of mobile phone battery have been exempted from customs duty that come from countries like the United States or China. The move aims to reduce the cost of mobile phones and accessories in India. It will also help promote local production, especially when India is permanently ready to become the world’s second largest mobile phone maker.
Apple of the United States will benefit greatly from this import tax slash. According to a Reuters report, Apple has earned 23 % of the total revenue in 2024.
Is India jumping between Trump’s prices threats?
US President Trump wants to give priority to the local industry under his “US First” trade policy, the latest move on India’s import tax is considered a strong indication for the US administration, as it assured The United States will not increase or impose taxes. Additional trade barriers against Indian products.
Earlier, Trump claimed that India had imposed the most taxes on foreign goods in major economies and threatened to introduce mutual taxes on Indian products. He has threatened that if he tries to get away with the use of the US dollar, the BRICS Block-including India, has also threatened to impose 100 % taxes on the BRICS block countries.
It is speculated that with tax deductions on imports, India’s aim is to take advantage of the US trade war and increase its contribution to global supply chains. Trump’s prices are disrupting global trade, making the market anxious. According to a Reuters report, India will be able to deal with better than any unexpected year, with import tax deductions.
. Harley Davidson (T) on the duty of imported on EVS duty
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