New Delhi, India — India will sharply cut import tariffs on high-end American cars and eliminate duties on Harley-Davidson motorcycles under an interim trade pact with the United States, while keeping electric vehicles outside the agreement — a move that leaves Tesla without relief, an official said.
Under the interim framework released on Friday, India will reduce tariffs on premium U.S. cars to 30% from levels as high as 110%. Duties on traditional internal-combustion vehicles with engine capacity above 3,000 cc will be lowered gradually over a 10-year period, according to the official. Import duties on Harley-Davidson motorcycles will be scrapped entirely, with other premium motorbikes also set to receive reduced tariffs.
The announcement comes days after U.S. President Donald Trump said Washington would cut duties on Indian exports to 18% from 50% in return for New Delhi halting purchases of Russian oil, bringing the two sides closer to a broader trade agreement.
Electric vehicles, however, have been excluded from the interim deal, effectively shutting the door on a lower-tariff entry route for Tesla and sidestepping a key demand from CEO Elon Musk, who has repeatedly criticised India’s high import duties.
India’s position contrasts with the market access it has offered the European Union, where New Delhi has agreed to deeper tariff cuts — in some cases as low as 10% — across a broader range of vehicles, including eventual concessions on certain electric models.
India, the world’s third-largest car market after the U.S. and China, has long protected its domestic auto industry with import tariffs ranging from 70% to 110%. While it imports relatively few cars from the U.S., it does bring in high-end motorcycles, particularly Harley-Davidsons.
The official, who spoke on condition of anonymity as details of the interim pact are yet to be fully disclosed, said the tariff cuts are expected to take effect after the two countries sign a formal agreement, likely in March. India’s trade ministry did not immediately respond to a request for comment outside regular office hours.
SOURCE : AGENCIES | Follow Us: Facebook | Instagram | Twitter | Youtube |
