In its Union Budget 2025-26, India has reduced customs duty on high-end motorcycles, cars and smartphone parts, a step that promotes US companies like Harley-Davidson, Tesla and Apple after US President Donald Trump Gives New Delhi is called as “tremendous tariff manufacturer”.
However, according to Finance Minister Nirmala Sitarman, custom duty rationalization was introduced to become an Indian economy. Self -sufficient (Self -sufficient), and Mr. Trump’s tariff declarations were not a sign.
“We are looking at our economy. We are looking to strengthen the foundation of the Indian economy, to make it a manufacturing center,” he said exclusively to Sanjay Pugalia of NDTV.
Harley Davidson to get cheaper in India
In her budget speech on Saturday, Ms. Sitarman announced that with engine capacity of up to 1,600 cc, import duty on high -end motorcycles, which are imported as fully manufactured (CBU) units, 10 percent reduction 50 percent will be seen 40 percent compared to earlier.
According to the Union Budget 2025-26, the import duty on the semi-Nockd Down (SKD) kit has fallen by 20 percent to 25 percent earlier. In addition, a completely knock (CKD) units will now be taxed at 10 percent, which will be the first 15 percent.
The move will promote the import of quintaceant American Harley-Davidson motorcycles in India-a small tariff on which has long been a dispute bone between India and the US.
Harley-Davidson entered the Indian markets in 2010 as part of the “Mango for Motorcycle” signed between India and the United States in 2007. However, the American motorbike manufacturer exited India after nearly a decade in September 2020, as part of its broad additional additional. Cutback.
But a month later, Harley-Davidson motorcycles returned to the Indian markets after forming a non-equity partnership with the American brand to make and sell their bikes in India. Today, Hero MotoCorp Harley-Davidson makes and sells the smallest motorcycle in the company’s lineup.
During his first term at the White House, Mr. Trump raised a 50 percent import duty issue on Harley Davidson and said it was “unacceptable”.
Steps to attract Tesla?
Separate, Ms. Sitarman announced that tariff rate on luxury cars, including station wagons and recarks, more than $ 40,000 fell to 70 percent compared to 125 percent earlier. He also announced that the basic customs duty for lithium ion batteries used for electric vehicles in India is completely scattered.
Most of the EV manufacturers with most nuisance are already present in India and are developing automobiles for Indian roads. However, this step can be an incentive for American companies such as Tesla, which was very closely monitored on the vast and emerging Indian EV market.
In April 2024, Tesla CEO Elon Musk planned to visit India and meet PM Modi, leading to speculation of investment in the country. However, he canceled the journey due to his “very heavy Tesla obligations”.
Apple story
In Budget 2025-26, Ms. Sitarman announced that 28 items have been exempted from customs in mobile phone battery production that come from countries like America or China. The move aims to reduce the cost of mobile phones and goods in India. It will also help promote local production, especially India is constantly developing to become the second largest mobile phone manufacturer in the world.
This import tax slash will greatly benefit America’s Apple. According to a report by Reuters, Apple has captured a 23 percent stake in total revenue during 2024.
Jumping India jumping amidst Trump’s tariff hazards?
US President Trump is looking to prioritize the local industry under his “US First” trade policy, India’s latest step around import tax is being seen as a strong sign for US administration, as it A assurance wants the US will not increase or enforce additional trade obstacles against Indian products.
Earlier, Trump claimed that India imposes the most tariffs on foreign goods among major economies and threatened to introduce mutual tariffs on Indian products. He has also threatened to impose 100% tariffs on countries within the BRICS block-including India-if he tried to move away from using the US dollar.
It is estimated that with tax cuts on imports, India is also aiming to take advantage of the US-China trade war and increase its share of global supply chains. Trump tariffs are becoming global trade disintegrating, making the market uncomfortable. With import tax deduction, India will be able to deal with better ways, otherwise an unexpected year.
