by Stephen Rivers
- New Section 232 expansion raises tariffs on steel and aluminum derivatives to 50%.
- Imported motorcycles are likely to be impacted, sending prices sharply higher.
- Dealers, riders, and manufacturers brace for major disruptions to the U.S. bike market.
The latest tariff update is set to shake up the motorcycle market in the United States. On Tuesday, the Federal Registry added a 50 percent tax on imported motorcycles, following an order from President Donald Trump. The stated goal is to bolster American-made bikes, but the real impact may land squarely on riders’ wallets sooner than expected.
The measure is far from surgically targeted. It affects almost everything made of steel or aluminum imported into the USA. Included in dozens of codes included in the action are four of special note, 8711.30.00, 8711.50.00, 8711.60.00, and 8714.10.00.
Those all pertain to different types of motorcycles, including those between 50-250cc, 800cc+, electric motorcycles, “and cycles,” and “Motorcycle parts and accessories.”
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In essence, we can expect pricing to go up across the motorcycle industry. While importers don’t pay the tariff, American companies do, and those companies will likely pass the cost onto consumers. That means more expensive imported bikes and bike parts are headed this way. According to Bloomberg, even the goods that are already in transit don’t get a respite from the new tax.
Rising Costs Ahead
Online backlash is significant already. Users on Reddit are calling this out as a way for Harley-Davidson to remain relevant despite what they see as a lack of innovation. “Ahh, yes the old Harley tactic of making it harder for its competitors to sell in the US rather than innovating and making a product that people actually want,” said one. “Someone trying to rescue Harley again,” said another.
For Harley-Davidson, this could turn into a double win. Not only will it be harder for import brands to be successful in America, but also cut out competition. To that end, Harley could raise its own prices since it could be one of the only games in town.
Of course, by doing that, it could open up the door to imports making more sense from a financial point of view. At this point, only time will tell how it works out for the industry. If the car business is any indication, Americans will simply have to accept forking out a lot more cash.