MIC notes, “Motorcycles contain significant amounts of steel and aluminum content. If a motorcycle includes 75% steel/aluminum, this means 75% of the motorcycle will be subject to a 50% tariff and the remainder of the vehicle will be subject to the new country/region-specific tariffs. For example, a motorcycle from the European Union that was previously taxed (tariffed) at less than 2% would now see a 50% tariff on the steel/aluminum and 15% on the remainder of the bike.”
Impact on Costs Across the Industry
This will significantly increase the cost of every motorcycle being imported into the U.S. It will also increase the price of domestically manufactured vehicles that may not be able to utilize domestic steel/aluminum. The same applies to parts and accessories. This will significantly harm manufacturers, dealers, distributors, and aftermarket companies.
Example: Price Impact for Dealers and Consumers
The result is that a $10,000 motorcycle may now be forced to sell for $13,000 – $14,000 once the new tariffs are paid. Dealers and consumers will not be able to afford new vehicles under this new tariff structure.
Broader Industry Challenges and Supply Chain Realities
Even more concerning, the administration has since committed to adding more products to the expanded tariffs list every three months.
This will hit every powersports company, even those sourcing and manufacturing in the U.S.
Many powersports manufacturers, businesses, and retailers have long supported more production in the U.S. Several MIC member manufacturers have been building vehicles in the United States – some for decades – supporting American jobs and communities. Likewise, many aftermarket companies produce goods domestically and source materials from abroad and from within the U.S., reinforcing their dedication to American craftsmanship.
While the industry continues to work toward domestic sourcing and production, it will take time for supply chains, plants, and factories to be established in the U.S. In the interim, powersports companies will need to continue to import vehicles, parts, and accessories for the American market so that supplies are available to dealerships and retailers across the U.S. – the businesses that form the backbone of our industry and support more than 110,000 American jobs.
Seems like both parties lose in a tariff on motorcycles? Source BBC
RideReport Update: https://mailchi.mp/f45a2614f6c2/aug-28-tariffs-update-motorcycles-atvs-may-see-nearly-50-price-hike?e=bd1b12d25b
