Third time’s a charm?  For a long time now, there has been a trade war between the US and EU surrounding the financing of the commercial aircraft industry.  Both sides think that their counterparts are inappropriately funding their commercial aircraft industries.

And often, motorcycles and motorcycle parts and accessories are tariff bait.  In the latest round of the battle, the US had proposed tariffs of up to 100%.  The tariff would affect European motorcycles/scooters between 500 and 700cc as well as all parts and accessories from the European Union and the United Kingdom.

Office of the United States Trade Representative

The flag of the office of the USTR. Image credit: Wikimedia commons

Escaping tariffs

But this time around, these items do not appear on the US’s targeted tariff list.  Thanks to a combined effort by the Motorcycle Industry Council (MIC) and others.  Because of their work, motorcycles/scooters, parts, and accessories have been left of the most recent round of European Union tariffs.

MIC President and CEO Erik Pritchard had this to say about the proposed tariffs:

“This was the third time the USTR made this proposal, and the third time the industry was able to prevail with combined support.  The MIC’s Government Relations Office will continue to monitor the situation, hoping that the USTR does not propose these tariffs a fourth time.”

John Hinz, CEO of KTM USA also voiced his support of the MIC’s efforts:

We’re incredibly pleased that European motorcycles, parts, and accessories have been removed from the most recent round of EU tariffs in relation to the Airbus situation.  We are extremely thankful that the U.S. Trade Representative heard our concerns and recognized the unintended and potentially devastating impacts that tariffs could have on our industry.”

“This would not have been possible without the support of the MIC and its members, the efforts of Congressman Michael C. Burgess, M.D., Congressman Tim Walberg, Congressman Ken Calvert, Congressman Jim Jordan, our dealers and our employees, and the support of all our industry partners. Thank you to all who wrote letters, made phone calls, and let Washington, D.C., know the value of our industry and our businesses here in the United States.”

Temporary solution?

The use of tariffs is a strange game that has potentially devastating effects on the targeted industries.  With the impact of the COVID pandemic, neither side would likely win with the imposition of new and higher tariffs.

So for now, it seems that the motorcycle industry is in the clear for these proposed tariffs.  But that could quickly change depending on the political winds.  Whatever happens, we’ll keep you updated.

Subscribe to Our Newsletter

Thank you for subscribing!
This email is already subscribed.
There has been an error.