Harley-Davidson, the iconic American bike, has become a bone of contention between India and the US over import duties set by New Delhi.
High import levies imposed on the classic motorcycle have upset Washington and US President Trump himself has raised strong objection to it.
In early February, the Indian government reduced the duty on imported motorcycles to 50%, from 60% for bikes with engine capacity less than 800cc and from 75% for those with larger engines. But the cuts failed to please Trump, who said India was not doing the firm any favors.
However, the manufacturer of the cult bike doesn’t seem to be too perturbed about the tax. Harley Davidson India & China managing director Peter MacKenzie has said it is a requirement of the Indian government, so he accepts it, the Economic Times reported.
Each country has its own reasons for keeping the rate at a particular level and if you wish to export bikes overseas you need to play by the rules, he told the daily.
The price of Harley Davidson bikes in India ranges from 514,000 rupees (US$7,884) to 5.35 million rupees ($82,069).
The US government was upset by India raising import duties on certain items in its Budget for 2018-19, announced on February 1.