New Delhi, February 3, 2025 – India has taken preemptive steps to lower trade barriers, reducing customs duties on high-end motorcycles, cars, and smartphone parts, a move seen as a strategic effort to prevent the Trump administration from imposing tariffs on Indian goods.
Key Developments:
- India’s Tariff Reductions:
- Lower customs duty on motorcycles (up to 1,600cc), benefiting Harley-Davidson.
- Eased import duties on cars and smartphone components, supporting Tesla and Apple.
- Diplomatic Maneuvering:
- Comes ahead of PM Narendra Modi’s expected visit to Washington D.C. (Feb 12-14).
- India’s move contrasts with Trump’s tariffs on Mexico, Canada, and China.
- Last week, Modi and Trump spoke over the phone to discuss trade and strategic partnerships.
Strategic & Economic Considerations
- India-U.S. ties extend beyond trade, covering military technology, defense, and space cooperation.
- MEA Spokesperson Randhir Jaiswal emphasized India’s commitment to resolving trade disputes amicably.
While Trump has called India a “big tariff maker”, this move signals New Delhi’s intent to maintain strong U.S. relations while ensuring mutual economic benefits.
