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Trump brings up motorcycles as example in his speech right now
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When I looked into this a few days ago it showed that foreign built motorcycles did not fall under any of the codes that they were going to increase tariffs on.......but I could be wrong and that may have changed.
24% Japan, 20% EU if that chart he is waving is the rate they will do for everything and not some average.
Sky reports:
"He then confirmed the European Union would face a 20% reciprocal tariff on all other imports" (25% on automobiles)
Can't find new tarrifs code lists from the white house?
according to this Japan does not have a import duty (tariff) on Motorcylces,
https://www.customs.go.jp/english/c-answer_e/imtsukan/1204_e.htm
but does have a sales tax on them, but that would be on locally made bikes as well,
happy tariff day, hope paying for for stuff is Liberating,
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Think he mentioned Taiwan and some other countries was 60%. But who knows, It's Trump.
EU media now reports it as 20% tariff on everything from EU to USA.
I think I am starting to see how his plan will work to get prices down.
Do some stuff that results in prices shooting up by a decent amount. Then people will stop buying stuff and companies will be stuck with stock. Forcing them to lower their prices to be able to sell anything. And then he can remove the tariffs and BOOM, lower prices on everything like he was claiming he would do. And he can brag about a an average 15% price drop after prices go up by 20%.
Its the Harbor Freight coupon concept .
Pretty sure if other countries would have lowered their tariffs on American made goods in the past, this may have never happened.
The whole tariff thing has been confusing. Even though it appears to possibly be a great thing in the long run, the opposing side will not admit it.
I’m still unsure what it’ll do to the motorcycle market from Japan and Austria, which is the major concern of this thread. What about motorcycle parts as well…. This could definitely have a big effect on the industry
Time to dust off the old ATK factory
24% on everything from Japan.
Problem is, that Trump has included currency manipulation, which is not that easy to calculate, when deciding the level of penalty per region or country.
So even if a country has 5% import duty, he can deem it to be 15 or 20%. Who knows. If there is severe inbalance in that calculation, no country can just remove import duty on US goods, and be back to zero import duty exporting to US. They would actually have to pay US to get back to zero if he stick with currency manipulation being part of the equation.
So I forsee this being a long and dirty process.
Time for the US to end being taken advantage of.
This is a topic that probably belongs in non-moto to go much further.
I might not be following it well enough. As a person that try's to stay as neutral as possible politically. I try and consume information from as many sources as possible . From what I have seen, nobody has really explained His plan . I see and hear many people explain what they think is happening after he makes a move . But It all seems like reactions and not part of a well planned consistent message.
If bringing manufacturing back to the US is the goal, put that out there. and give business time to even put a plan together to move manufacturing. If it is to give a more level playing field for US manufacturing worldwide and get Tarif lowered in other countries , and try and bring it back to the US . Why not talk with those countries first. Instead of causing the big ups and downs in the market. Say, if a tariff is not reduced ,or if a plan to reduce them is not presented by X date, we will put tariff of an equal amount on Your items. And give a reasonable amount of time to get that plan together.
As it has been, it seems like he/ the administration hasn't been clear about why. Boarder security was one reason, other boarder security related things.
I did not watch the speech, so perhaps he made everything clear now. Or will the reasons keep changing and people keep making a ton of money in the stock market that know what he's going to do next?
Or like I said at first, maybe I'm just not following it well enough. My mother used to be obsessed with the news and I was following things closer a year or 2 ago. But things have changed and shes no longer wanting to consume so much of the craziness.
There needs to be enough people on both sides of the political isle to make a plan of bringing manufacturing back to the US work. It is unlikely to be able to be done over a single presidential term. And if companies think that things will change with the next election cycle, many may wait things out. If there was a more united movement with both parties working on it, it may have a better chance at happening. As it is, I worry that its just going to increase costs and hurt more than it helps.
Let's just keep it to what will happen with pricing on dirtbike and spare parts.
Currently, 20% import duty on Beta, KTM, Husky, Gasgas, Sherco, TM.
24% on kawi, Honda, Yamaha, Suzuki.
With the low margins on bikes, 60-70% of that is going directly to consumer? Maybe only 30% on spare parts?
~1500 usd increase on a new bike? Triumph (UK) only 10%, they will benefit most. That's 800 usd lower price than others.
Most people here are looking at it from the consumer's perspective. But imagine being Harley Davidson right now. The raw material you were using to build your motorcycles is now more expensive because of tariffs on imported steel and aluminum. Granted, if the tariffs work as intended, this can be mitigated somewhat by buying domestic steel - though I would think that the tariffs will drive up the market for that as well - since imported steel will be more expensive, that inflates the overall market allowing domestic producers to charge more. Then the motorcycles you're trying to sell in Canada and the E.U. are facing tariffs, making already expensive machines even more expensive, driving down sales. Cost go up, sales go down. Going to be rough times ahead for them, I would think.
Looking at the silver lining.
I have a few bikes I need to sell...thinking used bike prices will go up too.
That's the spirit!
Trump appears to keep confusing VAT for tariff.
It's not really complicated, VAT is a sales tax paid on a product, wether it's made in your own country or abroad it's the same so it has nothing to do with tariffs, quite the contrary, VAT does not depend at all on country of origin.
The country list looks so amateurish and random, they've included many uninhabited territories, also various territories from a given country appear multiple times with different tariffs...
The left column is hilarious, no doubt it will get dissected tomorrow.
To sum it up:
+24% for Honda, Yamaha, Kawasaki, Suzuki
+20% for KTM, Husqvarna, Gasgas, Ducati
+10% for Triumph
Happy liberation day America!
I don't think most people realize just how small the margins are on dirt bikes. When you add in floor plan financing, if they don't sell a bike quickly, there's basically no margin at all. Dealers rely on parts and service to make the bulk of their profits.
Pit Row
The most recent ATK dirt bikes were reworked Cannondales and they were rebadging Maico 620 and 700 2 strokes . They were also rebadging some Korean street bikes . That's awhile ago now but I believe they still sell parts .
Yep this is exactly what's happening we buy a lot of domestic Steel and it's going to follow the Tariff price the overall Market is inflated not a good thing!
More of a reason to go buy that bike for a low price today before everything skyrockets!!!
Exactly, how would motorcycle importers absorb a 20-24% tax when they have 10% margin?
It will go straight to consumer pricing.
Since the margins are so low, it hits bikes of this kind very hard. Maybe harder than anything else. Low margins = high import price that the extra customs will be based on.
So 24% on a kawi, for a bike that is 10k in retail and with that has a import base of maybe 8k (where the 24% will be added to). That's 1900 usd added to retail price. That steep.
As I said, with the positive reviews triumph are getting, they will really benefit from this. Only ~1k added to price instead of 2k.
The Triumph is made in Thailand. So not sure how that plays into it.
Apparently the left column is not completely made up, it's just that this has nothing to do with tariffs imposed on US goods by other countries, it's more or less what you get when dividing trade deficit by imports.
10th graders using ChatGPT to tank the world economy : https://chatgpt.com/share/67edb4b0-7fa4-800c-aa08-e6643d6149b4
Please, Please, it's too much winning! I can't take it anymore, Mr. President!
If so they are completely fucked instead. 36% import duty for stuff from Thailand to US. 2800 usd added.
Hmm, why did it end up in non moto? It's as much moto as it can be. 2000 usd potential added to dirtbike costs due to tariffs...? @ML512
Would be interesting to discuss what manufacturers, distributors and retailers that gets hit by it, but no one reads the non moto stuff 😄
i cant see this helpings KTM's financial position,
Just confirmed I’ll be hanging onto my old Rusty but, trusty CR’s….
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