India has agreed to eliminate import duties on Harley-Davidson motorcycles under an interim trade framework with the United States, offering a major concession on a long-contentious issue in bilateral trade talks.
The move, which also includes phased tariff cuts on high-end American cars, is expected to lower prices of premium US bikes in India and address repeated criticism from US President Donald Trump over India’s steep duties on iconic American brands.
The move could lower prices for premium vehicles but keeps electric cars firmly outside the deal.
Harley-Davidson has been a long-standing point of friction in India–US trade talks. The American motorcycle maker sells premium bikes in India, most of them imported as completely built units, which has kept prices high. With the removal of import duty, Harley-Davidson motorcycles are expected to become significantly cheaper for Indian buyers, although final prices will also depend on local taxes and dealer margins.
Trump has repeatedly cited Harley-Davidson while criticising India’s tariff regime, often arguing that New Delhi imposes excessively high duties on iconic American products. In earlier remarks, he claimed India’s tariffs made it extremely difficult for Harley-Davidson to compete in the Indian market, using the brand as an example of what he called unfair trade practices.
Under the proposed arrangement, import tariffs on large internal-combustion engine cars will be reduced to 30 percent from levels as high as 110 percent, while duties on Harley-Davidson motorcycles will be eliminated entirely, according to an Indian government official familiar with the discussions. However, India will not extend similar concessions to electric vehicles, a decision that effectively shuts out companies such as Tesla from lower-tariff access for now.
The interim framework was announced on Friday, bringing the two countries closer to a broader trade agreement expected to be signed in March. The development comes days after US President Donald Trump said Washington would cut duties on Indian exports to 18 percent from 50 percent in exchange for India halting purchases of Russian oil.
As part of the auto-related concessions, tariffs on traditional petrol and diesel cars with engine capacity above 3,000 cc will be reduced in phases over a 10-year period until they reach 30 percent. India currently imposes steep import duties of 70 percent to 110 percent on fully built cars to protect domestic manufacturers in what is now the world’s third-largest car market after the US and China.
Electric vehicles have been kept out of the interim deal. The official said no tariff relief is being offered for EVs, despite repeated demands from Tesla chief Elon Musk, who has frequently criticised India’s high import duties. This contrasts with India’s negotiations with the European Union, where New Delhi has agreed in principle to deeper tariff cuts, including eventual concessions on some electric vehicles.
India currently imports only a small number of cars from the US, though it does bring in premium motorcycles such as Harley-Davidsons. Other high-end American motorbikes are also expected to benefit from reduced duties under the interim framework.
The details of the agreement have not yet been fully disclosed. India’s trade ministry did not respond to requests for comment outside regular office hours. The tariff cuts are expected to come into effect once the agreement is formally signed in March.
