Electric vehicles snubbed as US-India trade deal slashes luxury car tariffs
The post Electric vehicles snubbed as US-India trade deal slashes luxury car tariffs appeared on BitcoinEthereumNews.com.
On February 6, 2026, the United States and India signed a significant trade agreement that will lower the cost of American luxury automobiles and motorcycles for Indian consumers. Companies like Tesla, meanwhile, are still expecting improved access to India’s expanding market because electric vehicles are not covered by the pact. The agreement has significant implications for high-end American automobiles. India will reduce taxes on gasoline-powered vehicles with displacements of more than 3,000cc. Buyers currently pay up to 110 percent in duties. Over the next ten years, those taxes will be reduced to 30 percent under the new accord. All import taxes will be eliminated for Harley-Davidson motorbikes. A $500 billion commitment for closer ties President Donald Trump and Prime Minister Narendra Modi worked together to hammer out the agreement. The agreement functions as a commercial agreement between the two nations. The present 50 percent tariff on goods originating from India will be reduced to 18 percent in the United States. In exchange, India has pledged to purchase $500 billion worth of American goods. India also consented to reduce its oil purchases from Russia. India’s commitment to forging closer connections with the United States is demonstrated by the $500 billion pledge. India is prepared to spend more for strategic and political reasons as a result of the switch from cheaper Russian oil to more costly American energy. Electric vehicles shut out of agreement The most surprising part of the deal is what got left out. Electric vehicles will not get lower taxes, even though Tesla’s Elon Musk has spent years asking Indian officials to reduce import duties. He has argued that the high taxes make his cars too expensive for Indian customers. By keeping EVs out of this trade deal, Indian leaders made their position clear. Foreign electric car companies will…
Filed under: News - @ February 7, 2026 9:24 pm