Budget 2025: Import duty on 1600cc motorcycles cut, Harley-Davidson bikes may get cheaper

This decision to slash tariffs in Budget 2025 comes as US President Donald Trump threatened reciprocal taxes on countries which levy high tariffs on US goods.

Imported bikes such as those from American brands like Harley-Davidson may soon become cheaper in India as the Budget 2025, presented by finance minister Nirmala Sitharaman on Saturday, February 1,2025, has lowered import duties motorcycles with high engine capacity.

A Harley-Davidson bike is seen. (Reuters)

The import duty on motorcycles with engine capacity of up to 1,600 cc, which are also imported as completely built-up (CBU) units, has been slashed from 50 per cent to 40 per cent.

Bikes of American motorcycle manufacturer Harley Davidson are known for their bikes of high engine capacity.

Apart from this, the import duty on semi-knocked down (SKD) kits has also been reduced from 25 per cent to 20 per cent, and for completely knocked down (CKD) units, the tax is now 10 per cent, compared to 15 per cent earlier.

This decision to slash tariffs comes as US President Donald Trump threatened reciprocal taxes on countries which levy high tariffs on US goods.

Trump had said in December last year that India taxes excessively, adding, "If they tax us, we tax them the same amount".

India was also the largest trading partner of the US during the last financial year, according to data by the Ministry of Commerce.

Apart from all of this, the Harley-Davidson tariff has also been a point of contention for several years between India and the US, with Trump batting for its reduction.