The Impact of New Tariffs on the Motorcycle Industry

If you’ve been left scratching your head attempting to figure out how the implementation of global tariffs will impact your two-wheeled endeavors, that just means you’re like everyone else.

It’s not just the prices slapped on new motorcycles that has been affected, but also that of accessories and parts – and therefore repairs and maintenance. Of course, all of that is further compounded by similar concerns you’re likely to contend with on a daily basis outside of motorcycling.

While there’s no avoiding it, that doesn’t make things any less confusing. With tariffs used as a tool to gain leverage in trade negotiations, the situation is almost by definition one that is evolving – and often rapidly so.

Impact on United States Motorcycle Market

Despite the best efforts of the Motorcycle Industry Council (MIC) to shield the motorcycle industry and minimize the potential damage, tariffs have already had a negative impact on the market. Year-on-year sales have dropped in the neighborhood of 10%, both due to an increase in cost and lowered demand as a result of uncertainty as potential buyers adopt a wait-and-see approach.

While imported bikes face the most direct challenges, even US-based manufacturers are feeling the heat, as the increased price of raw materials and components sourced outside the United States have upped their manufacturing costs.

Impact on Consumers

Tariffs are generally passed onto the consumer, although to date, motorcycle manufacturers and their dealer networks have largely elected to absorb some of those increases in hopes of retaining demand and preventing the market from cooling to an unacceptable degree.

Only now are consumers starting to see various “supply chain” and “import duty” surcharges being applied, typically in the range of hundreds of dollars. Other times, they’re present but invisible other than the straight increase in the list price.

Unfortunately, for those who prefer a straight-forward answer to what they should expect, tariff-related increases can only be determined on a case-by-case basis, as the year of manufacture, import date, and country of origin all factor into what, if any, tariffs surcharges could apply. 

Value Considerations

If that case-by-case increase forces you to reconsider a planned purchase, you’ll be forgiven if you elect to sit tight and see what transpires in the hope for greater clarity along with the potential for fluctuation in a positive direction. 

However, the wide-scale implementation of tariffs across all aspects of life – along with the possibility of an oil crisis as a result of escalating conflict in the Mideast – might actually increase the relative value of motorcycling depending on your particular circumstances.

With lower vehicle prices and operational costs when compared to automobiles, daily commuting on two wheels will present an enhanced value proposition for some.

In other words, add yet another variable to the aforementioned case-by-case consideration.

Silver Lining

A previous dilemma encountered by the motorcycle industry offers a potential silver lining for consumers.

The powersports market enjoyed a pandemic-era boom from 2020-2023, providing an attractive and socially distanced outlet for those flush with disposable income and needing an outlet after being placed on lockdown and shut out from so many of their pastimes.

Many motorcycle manufacturers were seduced into believing this represented a new normal rather than a temporary boon, resulting in an overproduction crisis.

As a result, there’s a bountiful second-hand market along with excess stock of new bikes that dealers are incentivized to move off their showroom floors – neither of which are subjected to tariff surcharges.

The widespread availability of recent vintage models both new and used shifts some leverage back to consumers.

Tariff Navigation 

There are no easy answers, but the best thing motorcyclists can do is be prepared for further change, stay educated on the situation, and know who you can trust.

As always – and perhaps more so now than ever – reputable dealers and trusted mechanics are a rider’s best friend, offering both insight and foresight on a situation that is difficult to untangle.