India-US deal excludes Tesla from tariff relief, retains 100% import duty
The India-US trade agreement grants Harley-Davidson motorcycles tariff-free entry but retains a 100% import duty on Tesla vehicles. This exclusion likely delays Tesla’s India launch and raises costs for imported EVs, potentially hindering its expansion in the world’s third-largest auto market.
1. Trade Agreement Provisions
The US and India finalized a trade pact that eliminates customs duties on Harley-Davidson motorcycle imports, catering to US manufacturers and enhancing two-wheeler market access in India.
2. Exclusion of Tesla Vehicles
Despite broad tariff cuts, the deal preserves a 100% import duty on Tesla’s electric vehicles, with no concessions for the Model S, 3, X or Y lines.
3. Impact on India Market Entry
Steep duties could inflate Tesla’s retail prices by over 50%, delaying its planned launch and weakening its price competitiveness against domestic EV makers.