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India-US trade deal gives tariff-free access to Harley bikes, no reprieve for Tesla
| USA | economy

India-US trade deal gives tariff-free access to Harley bikes, no reprieve for Tesla

#Harley-Davidson #Tesla #Import Tariffs #India-US Relations #Trade Deal #Electric Vehicles #Make in India

📌 Key Takeaways

  • India has officially eliminated import tariffs on Harley-Davidson motorcycles to ease trade tensions with the United States.
  • The deal does not extend to Tesla, which continues to face 100% import duties on its electric vehicles.
  • Indian officials are leveraging high tariffs to demand that Tesla commit to local manufacturing rather than just importing cars.
  • Harley-Davidson’s existing partnership with Hero MotoCorp likely paved the way for its favorable trade status.

📖 Full Retelling

The Indian government and United States trade officials reached a significant bilateral agreement in New Delhi this week to grant Harley-Davidson motorcycles tariff-free access to the Indian market, aiming to resolve long-standing trade friction over high import duties on luxury goods. This breakthrough comes after years of diplomatic pressure from Washington, particularly during the Trump and Biden administrations, which had frequently cited India's 50% tariff on heavy motorcycles as a textbook example of protectionist trade policy. By eliminating these levies, India seeks to strengthen its strategic economic partnership with the U.S. while positioning itself as a more open market for premium manufacturing brands. While the deal marks a victory for the Milwaukee-based motorcycle icon, it notably excludes the electric vehicle giant Tesla, which has been lobbying the Indian Ministry of Commerce for similar duty concessions. Despite repeated requests from Elon Musk to lower the staggering 100% import tax on high-end electric cars, Indian authorities maintained their stance that any reprieve for Tesla would be contingent upon a firm commitment to local manufacturing. The government’s 'Make in India' initiative remains the primary hurdle for Tesla, as officials prioritize the development of a domestic EV supply chain over the entry of foreign-made luxury vehicles. The divergence in treatment for these two American corporate giants highlights India's nuanced approach to trade liberalization. While Harley-Davidson already operates a limited assembly partnership in India through Hero MotoCorp, Tesla has resisted establishing a production facility without first testing the market via imports. This regulatory stalemate suggests that while India is willing to offer olive branches on traditional high-volume prestige goods to satisfy trade partners, it will continue to use high tariffs on the automotive sector as leverage to force multinational corporations into long-term infrastructure investments and job creation within the country.

🐦 Character Reactions (Tweets)

Bike Buddy

Harley-Davidson gets a VIP pass to India while Tesla's left at the gate. Guess the 'Make in India' rulebook doesn't have a chapter on 'Silicon Valley Exception' 🏍️💨

EV Enthusiast

India says 'No Tesla, you can't park here until you build a garage.' Meanwhile, Harley-Davidson cruises in like it owns the place. 🏗️🚗

Trade Troll

Harley-Davidson: 'We're in!' Tesla: 'But we want in too!' India: 'Not until you bring the party to us.' 🎉🏭

Policy Pundit

India's trade policy: 'We'll roll out the red carpet for your bikes, but your electric cars? They'll have to take the scenic route through our factories first. 🛣️🏭

💬 Character Dialogue

Маленія: Harley-Davidson rides into India without tariffs, while Tesla remains stranded. The gnoll of protectionism festers, yet some are spared its rot.
Ерік Картман: Dude, this is so not fair! Harley gets a free pass, but Tesla has to deal with all that tax crap. I mean, come on, I can't even get my favorite snacks without extra fees!
Маленія: India demands Tesla build within its borders, a test of will and loyalty. Much like my brother, they seek dominion over the land.
Ерік Картман: I don't get it. Why can't Tesla just get a break like Harley? It's like they're saying, 'Sorry, Elon, you gotta make your cars here if you want to sell them. Sucks to be you!'
Маленія: The dance of trade is a cruel one. Some are granted passage, others are left to rot. Such is the way of the world.

🏷️ Themes

International Trade, Automotive Industry, Economic Policy

📚 Related People & Topics

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Connections for Tesla:

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📄 Original Source Content
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry As Claude disrupts stock market, Anthropic researcher warns ’world is in peril’ Gold, silver prices rise amid U.S.-Iran tensions, blowout January payrolls data Dow halts three-day win streak as blowout jobs data curbs rate cut bets Citi pushes back Fed rate cuts to May after blowout January jobs report (South Africa Philippines Nigeria) India-US trade deal gives tariff-free access to Harley bikes, no reprieve for Tesla Stock Markets Published 02/07/2026, 10:57 AM Updated 02/07/2026, 11:18 AM India-US trade deal gives tariff-free access to Harley bikes, no reprieve for Tesla 2 HOG -1.72% TSLA 0.80% By Shivangi Acharya NEW DELHI, Feb 7 - India will slash tariffs on high-end American cars to 30% from as high as 110% and eliminate duties on Harley-Davidson bikes under an interim trade pact, an official said, but will not make concessions for electric vehicles, a move that pointedly leaves Tesla out. The U.S. and India moved closer to a trade pact after releasing an interim framework on Friday, days after President Donald Trump said duties on Indian exports would be cut to 18% from 50% in exchange for New Delhi halting purchases of Russian oil. Under the deal, tariffs on traditional internal-combustion cars with engine capacity above 3,000 cc would fall gradually to 30% over 10 years, an Indian government official said. TESLA SHUT OUT OF TARIFF CUTS Electric vehicles have been excluded from the deal, the official added, shutting the door on a possible lower-tariff entry route for Tesla - ignoring a key demand from Elon Musk, who has frequently criticised India’s high duties. The stance contrasts with the broader auto access India has offered to the European Union, where New Delhi agreed to steeper tariff cuts to as low as 10%, across a wider range of vehicles, including eventual concessions on some electric vehicles. India, the world’s third-largest car market after the U.S. and China, has long protected its domes...

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