Last week, India reduced import duties on motorcycles, as the customs tariffs on heavyweight bikes with engines exceeded 1600 cm from 50 % to 30 % and smaller from 50 % to 40 %.
A preventive step aimed at increasing the facilitation of Harley Davidson's entry into India-and Delhi hopes, and avoids any threat of tariffs. American motorcycle exports to India were worth $ 3 million last year.
Donald Trump distinguishes his return to the White House by meeting commercial measures against America's neighbors and allies, as well as its big competitor.
India hopes to be before the game – but will the tariff cuts cause in Trump, or will trade measures be on the table?
“Canada and Mexico are literally two arms of the United States. If he had behaved against them, he may act easily against India as well,” says Ajay Srivastava, founder of the World Trade Research Institute in Delhi.
In their phone conversation late last month, the US President pressed Prime Minister Narendra Modi to buy more American weapons and for there to be a more fair commercial balance, while continuing to pressure.
During his first term, Trump installed sharp tariffs in India. He has repeatedly criticized 100 % obligatory on Harlelis as “unacceptable”, making it a crowd point in the Crusader campaign against what he saw as unfair commercial practices.
In the past, India has repeatedly described India as “the king of tariffs” and “the great aggressor” of trade relations.
India has a commercial surplus with the United States, its supreme trade partner. Bilateral trade crossed $ 190 billion (150 billion pounds) in 2023. Our goods exports increased by 40 % to 123 billion dollars since 2018, while the services trade has grown by 22 % to $ 66 billion. Meanwhile, US exports to India amounted to $ 70 billion.
But beyond bicycles, India cleared import taxes on satellite installations, benefiting from US exporters who submitted $ 92 million in 2023.
The customs tariff decreased on the essence of the artificial flavor from 100 % to 20 % ($ 21 million in US exports last year), while duties on fish hydroles for water feeding decreased from 15 % to 5 % (35 million dollars in US exports in 2024) . India also canceled the definitions of selected elements of waste and scrap, a category with US exports amounted to $ 2.5 billion last year.
The best exports of the United States to India in 2023 included oil and petroleum products (14 billion dollars), LNG, coal, medical devices, scientific tools, scrap minerals, turbulence, computers and almonds.
“While Trump has criticized customs tariff policies in India, the latest cuts indicate a policy that can enhance American exports across various sectors,” says Mr. Srivastava.
“With the main tariff discounts on technology, cars, industrial imports and waste, India appears to take steps towards facilitating trade even with the survival of the world trade environment tense.”
Meanwhile, India's exports extend to a variety – from textiles, pharmaceutical preparations, and engineering goods to petroleum oils, machines and broken diamonds. It also charges smartphones, auto parts, shrimp, gold jewelry, shoes, iron and steel, making them a major player in world trade.
“This variety of products reflects the wide export base in India and its strong commercial relationship with the United States,” says Mr. Srivastava.
India was one of the most protective economies in the world. In the 1970s, the American political scientist Joseph Greco described it as one of the “most restricted, stressful systems … organizes foreign direct investments.”
This internal appearance approach led to a fixed decrease in the export share in India from World Trade, from 2.42 % in 1948 to only 0.51 % by 1991. Like Asma Sinha, author of the Globalization of India: How global rules and markets are the rise of India to power It was noticed that this period was characterized by “self -manufacturing engine, export interconnection, and suspicion of global alliances.”
India has recently opened in the nineties and quiet games, as it reduced the average customs tariff from 80 % in 1990 to 13 % in 2008.
But after Moody launched his policy “Make in India” to enhance manufacturing in India, India's tariff rose again to about 18 % – higher than that set by other Asian countries such as China, South Korea, Indonesia and Thailand.
Biswajit Dhar believes that India is now a major goal under Trump's “America” policy, which seeks mutual measures against high import taxes and re -evaluating trade with a major deficit in the United States.
He says access to agricultural markets is still a point attached to the United States.
India dropped a retaliatory tariff for almonds, apples, chickpeas, lentils, lentils and carrots in 2023, but Trump is likely to ask for more. However, India may bear a firm, given a local political sensitivity to agriculture.
“This is where we will lead a solid deal, and problems can arise,” Mr. Dar warns.
However, India's strategic relations with the United States – as a quadruple member facing China – can help reduce friction. Mr. Dar notes that India's willingness to accept the deportation of Indian immigrants who are not documented in the United States without paying has sent a positive signal, as Mr. Dar notes.
Experts also refer to Moody's warm personal relationship with Trump as a feature. Some clarity will come when the Indian Prime Minister will visit the White House – this month, according to some reports – at the invitation of Trump.
