Will Harley-Davidson finally get cheaper in India under the new US trade deal?

The new India-US trade deal will grant zero-duty access to American motorcycles with engine capacities of 800–1,600 cc and above. This move is expected to benefit Harley-Davidson, which has struggled with high import tariffs in India. The duty elimination will take effect as soon as the agreement is implemented.

The pact also reduces US tariffs on Indian goods to 18% from 50%, while the first phase of the deal is expected to be signed by mid-March. Despite concerns, local production is unlikely to be affected significantly, as the high-end bike segment in India is small.

Harley-Davidson had previously partnered with Hero MotoCorp to sell bikes and merchandise in India. The zero-duty access now allows US-made motorcycles to compete more effectively in the premium segment.

Under the trade deal framework, India will remove import duties on US motorcycles above 800 cc, including Harley-Davidson models like Street 750 and Iron 883. The agreement aims to enhance trade between the two nations, while also addressing previous complaints from the US about India’s high tariffs.

Hero MotoCorp, which collaborates with Harley-Davidson, will continue selling Harley motorcycles and accessories through its dealer network. The measure ensures Indian consumers gain access to high-quality, premium motorcycles at competitive prices.

Officials say the move targets products where local production is limited, ensuring no major impact on domestic manufacturers. Additionally, several other US goods, such as alcoholic beverages, cosmetics, and medical devices, will also benefit from zero-duty access under the agreement.