India to Slash Tariffs on American Cars, but Tesla Excluded

India has announced plans to reduce tariffs on high-end American cars and eliminate duties on Harley-Davidson bikes, as part of an interim trade agreement with the United States. However, the deal explicitly excludes electric vehicles, much to the dissatisfaction of Tesla and its CEO, Elon Musk.

The pact comes after the US and India released an interim trade framework. President Donald Trump noted that tariffs on certain Indian exports would decrease from 50% to 18%, as New Delhi agreed to stop purchasing Russian oil. Conventional cars with over 3,000 cc engine capacity will see a reduction in tariffs, dropping to 30% over the next decade.

Despite India's willingness to open its market to wider automotive access from the European Union, the arrangement with the US does not extend such benefits to electric vehicles. This decision keeps Tesla from entering one of the world's largest auto markets at more favorable tariffs, upholding India's protective stance over its domestic industry.