Your own Harley, finally? Rising hope of zero duty on big American beasts hogs limelight, hypes up Indian aficionados

Harley Davidson price in India: The Indian Harley-Davidson lover's dream of 'hogging' the road astride a big American beast may have just taken a real big stride towards becoming a reality, if reports of oncoming deep duty cuts are to be believed.

The government is considering extending duty-free import opportunities for select vehicles from the United States, including motorcycles with engine capacities exceeding 1,600cc, contingent upon reaching a favourable agreement in key interest areas, The Times of India reported on April 25. Some of the benefits being negotiated may, however, be subject to quotas, meaning that the duty reductions could apply only to a limited number of units imported under the envisioned bilateral trade arrangement, the report said.

It may be noted here that the United States has put significant pressure on India to decrease tariffs on a variety of goods, including vehicles, whiskey, and agricultural products, asserting that the high import duties are obstructing American exports.

Although India reduced customs duties on certain items like premium motorcycles and bourbon in February, the Trump administration remains unsatisfied and is advocating for additional cuts. Harley Davidson motorcycles and Tesla vehicles are particularly prioritized by Trump, especially given Elon Musk's close association with the American President.

Musk has been actively advocating for lower import tariffs in discussions with Indian officials, a request that the government previously declined. Nonetheless, India introduced a new policy last year that established a temporary 15% tariff rate, provided that companies taking advantage of this offer set up manufacturing operations in the country.

Comprehensive guidelines regarding these tariffs are anticipated to be released in the coming weeks, as inter-ministerial discussions are currently taking place. A significant reduction in tariffs could potentially influence investment strategies.

In light of the potential for retaliatory tariffs, the commerce department, which is spearheading negotiations for a bilateral trade agreement, is consulting with various government departments and ministries. These agencies are, in turn, soliciting input from industry representatives and other pertinent stakeholders.

While formal negotiations on specific sectors have yet to begin, a delegation led by India’s chief negotiator, Rajesh Agrawal, is currently in Washington to address outstanding issues and investigate the possibility of an "early tranche" of agreements.

Initially, Trump and Indian Prime Minister Narendra Modi had planned to finalize the first tranche by autumn (September-October), which would encompass import duties on goods, non-tariff barriers, and strategies to enhance the supply chain.

India is optimistic that, in exchange for the concessions it offers, the Trump administration will refrain from imposing the 26% reciprocal tariffs that have been suspended for 90 days, and will also consider lowering duties on labor-intensive exports such as textiles and leather products from India.