US President Donald Trump has urged India to reduce tariffs on automobile imports, however, leading American companies like Harley-Davidson and Tesla seem unaffected by this call. Both companies have chosen to manufacture their products outside the US – Harley-Davidson imports motorcycles from Thailand and Tesla plans to ship cars from Germany. These decisions are driven by factors like locational advantages and economies of scale. Despite India’s recent cuts in customs duties, it is unlikely to sway these companies from their current import strategies. The automotive industry continues to navigate global trade dynamics, with companies making strategic choices based on various factors beyond just tariff rates.