US President Donald Trump has advocated for reciprocal tariffs on countries, suggesting that each nation should impose tariffs equivalent to those levied on goods exported from the United States. During a bilateral meeting with Prime Minister Narendra Modi, he specifically mentioned India's high tariffs on American-made Harley-Davidson motorcycles.

In his second term, Trump has reiterated his stance on reciprocal tariffs, asserting that such measures are essential for maintaining equitable trade practices. He previously imposed a 25 percent tariff on select imports from Canada and Mexico, although this action has been temporarily suspended until the end of February. Additionally, he has expressed concerns regarding trade policies with the European Union, China, and India, among others. "We are currently a reciprocal nation… We will implement the same tariffs that India imposes on us, as I believe this is fair," he stated. He recalled that Harley-Davidson faced challenges selling its motorcycles in India due to excessively high tariffs, which led the company to establish a factory there to circumvent these costs. "This is a strategy that others can adopt with us," he noted.

While India and the United States maintain significant trade relations, Trump's tariff proposals are not directed at any specific country. His focus on enhancing domestic production aligns with his campaign promises to create more jobs for American workers, indicating a desire for manufacturing facilities to either emerge or expand within the United States, rather than relying heavily on imports.

Whatever happened to Harley-Davidson in India?

Harley-Davidson made its entry into the Indian market in 2009, inaugurating its first dealership in 2010. Recognized as a premium brand in the United States, Harley introduced various models such as the Sportster, Dyna, VRSC, Softail, and CVO through imports during its initial years in India. Over time, the company shifted its focus towards the local assembly of certain models, producing the Street 500 and 750 in Bawal, Haryana.

However, penetrating the premium segment of India's extensive two-wheeler market proved to be a formidable challenge. In September 2020, Harley-Davidson announced its withdrawal from the market, citing disappointing demand and lackluster sales as the primary reasons. Nevertheless, this was not a complete exit, as the American manufacturer formed a partnership with Hero MotoCorp in October 2020, allowing Hero to sell and service Harley motorcycles. By 2023, the first collaboratively developed motorcycle, the Harley-Davidson X440, was launched at a price of ₹2.30 lakh (ex-showroom).

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