US President Donald Trump has once again accused India of exploiting and destroying the United States through unfair trade practices. He claimed the relationship between the two countries was “one-sided” and stacked against America.
Trump defended his decision to impose 50% tariffs on Indian imports, arguing that India charged some of the highest tariffs in the world. He said American businesses struggled in India, while Indian goods entered the US market freely, and once again, Trump gave the example of Harley-Davidson’s exit from India in 2020.
Harley-Davidson Example
Donald Trump pointed to Harley-Davidson to support his claim as he alleged the motorcycle company faced a 200% tariff in India, which forced it to set up a plant in the country.
“Harley-Davidson couldn’t sell in India due to 200 per cent tariffs,” Trump said.
Harley-Davidson Exit: Know the Reality
However, the facts tell a totally different story. Imported motorcycles once faced tariffs of 50% to 100% in India, and sometimes Trump exaggerated the number to “200%.”
Under Trump’s own presidency in 2018, India reduced tariffs on high-end motorcycles from 100% to 50% after US pressure, but despite this, Trump kept accusing India of “cheating.”
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Harley-Davidson did try to lower costs by setting up a manufacturing plant in Bawal, Haryana, in 2011, but the company exited India in 2020, citing low demand.
Why Harley-Davidson Struggled in India?
India is the world’s largest two-wheeler market, but it is dominated by affordable brands like Hero, Bajaj, and Honda, as these bikes are priced for the masses and target the daily commuting segment.
On the other hand, Harley-Davidson bikes cost anywhere between Rs 5 lakh and Rs 50 lakh, that price was out of reach for most Indian consumers.
Sales were disappointing even when Harley was manufacturing locally, and the company sold fewer than 3,000 units a year in a market of over 20 million bikes. It became impossible to sustain the business, leading to its exit in 2020.
The Facts on Tariffs
India did impose high import duties on premium motorcycles, but they were later reduced.
Motorcycles up to 1,600 cc: 40% duty
Motorcycles above 1,600 cc: 30% duty
In fact, India even considered a zero-duty quota for high-end bikes during trade talks with the US, but negotiations did not move forward.
