Prime Minister Narendra Modi’s ongoing visit to the United States has reignited the debate around trade policies, with Harley-Davidson once again in the spotlight.
In 2024, during a bilateral meeting with Modi, then-US President Donald Trump had fiercely criticized India’s tariffs on American goods.
“We are right now a reciprocal nation… We’re going to have the same. Whatever India is charging us, we’re charging them and I think it is just fair,” Trump said. “I remember when Harley Davidson couldn’t sell their motorbikes in India because… the tax was so high, the tariff was so high, and Harley was forced to build… But I think they built a factory in India in order to avoid paying the tariffs.”
Harley-Davidson’s Indian journey began in 2007 with the “mango deal,” granting market access for bikes over 800 cc while the US lifted its mango import ban. By 2010, the American icon was selling fully built imports, then opened an assembly facility in Bawal, Haryana, in 2011. The company’s first locally produced model, the Street 750, launched in 2014.
Despite a tariff cut in 2018 — from 100% down to 50% — Harley found limited benefit. In September 2020, citing sluggish demand, it halted manufacturing and sales operations in India. The brand, however, stayed alive through an alliance with Hero MotoCorp.
Facing renewed scrutiny ahead of Modi’s US talks, India introduced deeper duty reductions in its 2025 budget — import taxes for motorcycles up to 1,600cc fell to 40%, and above 1,600cc to 30%.
These sops aim to smooth trade tensions, yet Trump’s past remarks reverberate. He had labeled India a “tariff king,” vowing reciprocal action if he believed American goods were subject to unfair levies. While the latest cuts may soothe some friction, the core question remains: Will these measures fully satisfy Trump’s — or Washington’s — longstanding complaint over unequal tariff structures?