01 Feb 2025, 09:46 PM IST i A Harley-Davidson motorcycle painted in the Indian tricolour. In what is seen as a boost to Harley-Davidson Inc. and Tesla Inc., India has cut import duty on high-end motorcycles and cars after US President Donald Trump called out the country as a “tremendous tariff maker.” Motorcycles with an engine capacity of up to 1,600 cc, which are imported as completely built-up (CBU) units, will now attract an import duty of 40% as against 50% earlier, as per the Union Budget 2025-26. The import duty on semi-knocked down (SKD) kits has been cut to 20% versus 25% earlier. The completely knocked down (CKD) units will be taxed at 10% as against 15% earlier. Separately, the tariff rate on luxury cars priced above $40,000 has been cut to 70% from 125% earlier. These include station wagons and racecars. When asked if the reduction is aimed at combating the US’ tariff policy, CBIC Chairman Sanjay Kumar Agarwal said, “The earlier rate was 50% if it’s in CBU condition. The rate was higher in the case of the SKD condition. So, we reduced it to 40%... The idea is to rationalise the rates.” Speaking exclusively to NDTV Profit after the budget speech, Finance Secretary & Revenue Secretary Tuhin Kanta Pandey said, “The deductions have been demanded for motorbikes. The objective is to promote domestic manufacturing.” NDTV Profit had previously reported that India is planning to cut customs duty on about 7-8 high-end products—including specialised steel, high-end motorcycles and electronic items—after Trump labelled China, India and Brazil as high-tariff countries. ALSO READ