After centre hiked customs duty on 30 products imported from the US, the government on Thursday excluded American-sourced motorcycles from import duty hike, making additional customs duties imposed only on 29 items.

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Earlier, New Delhi had proposed an additional duty hike of 50% on CBU (completely built units) motorcycles above 800cc imported from the US to counter the increased tax imposed by Washington on certain steel and aluminium products coming from India.

The decision to exempt motorcycles from the list gains significance as US President Donald Trump had earlier raised the issue of duty imposed on Harley Davidson bikes in India on several occasions.

Trump had trained guns on the 50% tax levied on the US manufacturer claiming that it was unjust since the US had $800 billion trade deficit when it comes to bilateral trade with India.

“When a country Taxes our products coming in at, say, 50%, and we Tax the same product coming into our country at ZERO, not fair or smart. We will soon be starting RECIPROCAL TAXES so that we will charge the same thing as they charge us. $800 Billion Trade Deficit-have no choice!,” Trump had tweeted.

The decision comes on backdrop of the proposed visit by the US delegation to discuss trade issues on the June 25.

With the tariffs all set to come in to effect from August 4, the delegation is likely to discuss market access issues along with iron and steel duties and retaliatory duties by India.

(With PTI inputs)

First Published:Jun 21, 2018 3:26 PM IST