India will reduce import duties on high-end American automobiles to 30 percent from rates as high as 110 percent. The country will also remove tariffs on Harley-Davidson motorcycles as part of a temporary trade arrangement with the United States. However, the agreement does not include tariff reductions for electric vehicles, excluding companies like Tesla from the benefits.
The move represents a step forward in trade discussions between India and the US, aiming to enhance bilateral commerce while maintaining certain protections for emerging sectors such as electric mobility.
**Why this matters**
Lower tariffs on luxury vehicles and motorcycles could boost US exports to India and strengthen economic ties between the two countries. At the same time, the exclusion of electric vehicles highlights ongoing challenges in negotiating trade terms for newer industries and signals continued protection of India’s domestic EV market.
Source: NewsData