Trump doubles U.S.-India tariffs to 50%, citing Harley-Davidson as an example — here’s a simple breakdown: tariff math, court rulings, India’s duty cuts, and the latest situation in trade talks.
What Trump Said — and Harley Example
President Trump again named Harley-Davidson, which he says highlights India’s “unfair trade barriers.” He said India’s high motorcycle tariffs make it difficult for U.S. bikes to compete in the Indian market. He previously claimed the tariff was “200%,” but reports said the actual rate was much lower than that, and fact-checkers challenged the claim.
India has been levying high customs duties on premium motorcycles for quite some time, so Harley-Davidson is often discussed in trade debates. New Delhi reduced rates starting in 2025, making imports of large-capacity bikes a little more affordable.
Tariff Math: How the U.S. reached 50%
The tariff standoff between Washington and New Delhi had been building for quite some time. The U.S. first imposed a 25% “reciprocal” duty on Indian goods. Then, another 25% levy was added, which was linked to India’s purchase of Russian oil. After both measures, the effective tariff on some imports reached close to 50%, creating fresh tensions.
Washington says the aim is to pressure India to open its market. But New Delhi argues it needs to protect its sensitive sectors — such as dairy and small farmers. Negotiations are ongoing, but businesses on both sides are already feeling the impact of the tensions.
Courts and Legal Shake-Up
The U.S. federal appeals court recently ruled that many of the broad tariffs imposed under emergency powers may have fallen outside presidential authority. The 7–4 decision has been sent to the Supreme Court for review. The question now is whether the tariffs collected in the billions will remain valid or will have to be refunded.
For now, the duties are in place while the case progresses. This leaves businesses facing higher costs and importers facing the constant risk of a policy change if the Supreme Court strikes down the tariffs.
India’s Tariff Cuts and Business Impact
India’s 2025 Union Budget eased some tension by lowering duties on premium motorcycles. Customs duty on bikes up to 1,600cc has gone up to about 40%, and on bikes above 1,600cc it has gone up to about 30%. This has made imported Harleys and other luxury bikes noticeably cheaper for Indian buyers.
The move addresses a frequent complaint from the U.S., but Indian officials say tariffs are still necessary to protect local industries and farmers. Opening up markets further — particularly in agriculture and dairy — is still a political decision that New Delhi is unwilling to compromise on.
Trade Talks: Alive, but Complicated
Washington and New Delhi both say trade talks are still ongoing. India’s commerce minister confirmed that discussions on a bilateral trade agreement are in progress, but said New Delhi would not cross its “red lines.” Officials have hinted that progress could happen in the next few months, but geopolitical issues are slowing the process.
For businesses, the picture is mixed. India’s lower tariffs could boost sales of foreign luxury brands. At the same time, U.S. companies face uncertainty — both from higher American duties and possible sudden legal changes by courts.
Bottom Line — What to look for next
Readers should keep an eye on these things:
- Whether the U.S. Supreme Court hears the case — and if it does, what the ruling is.
- A new executive order from Washington that changes tariff levels.
- Concrete market-access offers or exemptions from India.
- Whether trade talks yield binding commitments or remain merely a phase of diplomacy.
- All of this will have a direct impact on prices, investment plans, and overall U.S.-India trade relationship.