From a full page ad in the Wall Street Journal to headlines from ACEM (Association des Constructeurs Européens de Motocycles – The Motorcycle Industry in Europe), the Tariff troubles are getting headlines on both sides of the pond. Most recently ACEM and USMMA (United States Motorcycle Manufacturers Association) issued a joint statement calling on European authorities and the US Administration to solve their differences without unduly impacting motorcycles.
Motorcycles will become collateral damage in the trade war if things don’t change before the June 1,2021 deadline. So far a coalition of 88 European and American associations have written to European Commission President von der Leyen and United States President Biden, supporting a suspension of the retaliatory tariffs within EU-US ongoing trade disputes, hitting unrelated sectors. “This development confirms the urgency to suspend all additional tariffs on unrelated sectors, to avoid damaging escalations,” says Antonio Perlot, ACEM Secretary General. “We call upon the European Commission and the new US Administration to restart a positive transatlantic trade dialogue. We continue to strongly support a return to reason and for both parties to find a solution.”
The appeal by industry is made once again to build on the positive momentum of the suspension of tariffs imposed in connection to the World Trade Organization (WTO) disputes concerning civil aircraft subsidies for four months as the Boeing vs. Airbus battle escalates. The call is also made to overcome differences within the steel and aluminum trade dispute. Ultimately, the Coalition wishes a return to a positive, reciprocally rewarding transatlantic relationship, supporting economic growth and benefiting producers and manufacturers, their distribution partners, importers and consumers, and all associated sectors.
ACEM and USMMA join the call, as the motorcycle sector has repeatedly been unduly targeted within the EU-US trade war escalation over the past few years. US motorcycles are heavily impacted by the EU rebalancing measures devised in response to the US decision to impose a 10% tariff on European aluminum products and a 25% tariff on European steel products back in June 2018.
Under Commission implementing regulation (EU) 2018/886, a list of US products, including motorcycles above 500cc, have faced additional duties when entering the EU since June 2018. As of June 1, 2021, European authorities are expected to double these additional customs duties, which will impose a 50% tariff on US-made motorcycles above 500cc.
