USTR for Zero Duty on Harley Motor Cycle, Raise Demand at Upcoming Meeting with Suresh Prabhu

[29.05.2018]

The Donald Trump administration has in recent months been firing away on all cylinders to get India to lower import levies on Harley-Davidsons. Succumbing to the deafening roar of US criticism, the Modi government complied in February. But now, New Delhi is under pressure to waive import duty on America’s iconic motorbike in its entirety.

Prabhu will meet USTR Robert Lighthizer in Washington in two weeks.

“Import tariffs are high on motorcycles as it is felt that our domestic industry needs to be protected, and manufacturing and job creation within the country needs to be encouraged,” the official said. “If duties are to be eliminated for Harley-Davidson, it has to be done for all high-end motorcycles imported from all countries. This could deal a severe blow to our domestic industry.”

In February, India reduced import duties on fully-imported motorcycles (above 800 cc) from 75 per cent to 50 per cent.

However, India’s gesture did not please Trump, who, instead, only criticised the country. Trump told a gathering of Governors of all the US States: “Now, the Prime Minister (of India), who I think is a fantastic man, called me the other day and said we are lowering (import duties on motorbikes) to 50 per cent. I said okay, but so far we’re getting nothing. He (Modi) gets 50 (per cent), and they think... they’re doing us a favour. That’s not a favour.”

In March this year, Harley-Davidson announced a reduction in the prices of its Touring and CVO models, which cost between ₹2.62 and ₹3.73 lakh.