Last week, India further reduced the imports of motorcycle duties, cutting tariffs on heavy bicycles with engines above 1,600 cc from 50% to 30% and smaller from 50% to 40%.
The previous move is intended for further stuck Harley Davidsons in India, hopes, refuses any threats to tariffs. American motorcycle exports to India was worth $ 3 million last year.
Donald Trump marked his return to the White House, lending trade measures against American neighbors and allies, as well as his large rival cinema.
India hopes to be ahead of the game – but will his tariff cutting to satisfy Trump or is a trade action still on the table?
“Canada and Mexico are literally two hands of the US. If he had acted against them, he could easily act against India,” says Ajay Srivate, founder of the Delhi research institute for the Think Think Tank (GTRI) research.
In his phone interview at the end of last month, US president pressed Prime Minister Narendra Modi to buy more US weapons and to be honest trade balance, keeping pressure.
And during his first term, Trump focused on the steep Indian tariff. He repeatedly scored a 100% duty on Harleys at the time as “unacceptable”, making him a gathering in his crusade against what he considered dishonest trade practices.
In the past, India has repeatedly been marked by the “King of Tariff” and the “great abuser” of trade connections.
India enjoys a trade excess with the US, its best trade partner. Bilateral trade exceeded $ 190 billion (£ 150 billion) in 2023. The export of goods in the United States increased by 40% to $ 123 billion from 2018, while services trade increased by 22% to $ 66 billion. Meanwhile, American exports to India was $ 70 billion.
But besides bicycles, India has allocated a tax on imports of satellite ground installation, which used US exporters who delivered $ 92 million in 2023.
Tariffs on synthetic essences of aromatization fell from $ 100% to $ 20% ($ 21 million in American exports last year), while duty on a water hydrolyzate for water foods fell from 15% to $ 5% ($ 35 million in US exports in 2024. year). India also abolished tariffs to selected waste and waste items, category in which US exports amounted to $ 2.5 billion last year.
The best American export in India in 2023 included raw oil and oil products ($ 14 billion), LNG, coal, medical devices, scientific instruments, waste metals, turbo, computers and almonds.
“Although Trump criticized Indian tariff politics, the latest reduction signals a change in policies that could improve American exports in different sectors,” says Mr. Srivanvasta.
“With a key tariff reduction of technology, cars, industrial imports and waste, India seems to take steps to facilitate trade, even if the global trade environment remains tense.”
Meanwhile, Indian exports include a diverse range – from textiles, pharmaceutical products and engineering goods to oil oils, machines and cut diamonds. It also delivers smartphones, car parts, shrimp, gold jewelry, shoes and iron and steel, making it a key player in the global store.
“This diverse range of products reflects a wide export base of India and its strong trade relationship with the US,” says Mr. Srivativasta.
India was once among the most protectionist economies in the world. In the 1970s, US political scientist Joseph Grieco described that he was one of the “brightest, cumbersome … regimes that regulate direct foreign investment.”
This internal appearance approach led to the constant fall of the Indian export share in the global trade, with 2.42% in 1948 to only 0.51% by 1991. As Aseem Sinha, the author of the Globalization of India: As global rules and markets form an increase in Indian powers to power, noted, this period marked “independently guided by industrialization drive, export pessimism and suspicion of global alliances.”
India finally opened up in the 1990s and 2000s, reducing average tariffs from 80% in 1990 to 13% in 2008.
But after fashion launched his “Make in India” policy to increase production in India, Tariffs climbed to about 18% – higher than those who set up other Asian states like China, South Korea, Indonesia and Thailand.
Trade expert Biswajit Dhar believes that India is now the main target of Trump’s policy “America’s First”, which seeks reciprocal measures against high import taxes and re -examines a trade with a major US deficit.
Access to the agricultural market is still a position for now, he says.
India rejected the retaliation of tariffs to American almonds, apples, chickpeas, lentils and nuts in 2023, but Trump is likely to look for more. However, India may have firmly with respect to domestic political sensitivity over agriculture.
“We will keep a difficult offer here and problems can arise,” warns Mr. Dhar.
Accordingly, the strategic connections of India with the USA – as a member of the quad that opposes China – could make friction easier. Indian willingness to accept the deportation of unfathomrated Indian migrants in the USA without pushing back has also sent a positive signal, Mr. Dhar notes.
Experts also point to Modi’s warm personal relationship with Trump as an advantage. Some clarity will come when the Indian Prime Minister visits the White House – this month, according to some reports – on Trump’s invitation.
