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Who cares, the vitards will still buy them. Tariff or no
You have a clue my friend
Boards of Directors and Politicians gutted manufacturing in this country. The general public doesn't give a shit as long as they can mainline a cart full of cheap goods from Sprawl Mart every other day. We are all pretty much guilty of enabling their behavior over the years. It could be painful for a while, and we might have to pay a little more for things in the long run and by a lot less frivolous shit but I am 100 percent behind what Trump is trying to pull off.
You'll only be behind what he's doing as long as you're employed and making a living. Once the depression hits and you're out of a job you'll change your tune.
That was already coming because of decades of outsourcing plus the collusion between the medical industry and insurance companies. I lose my job April 30 (it is being sent to Mexico), and that was likely decided before Trump was elected. For the last 11 years I have watched the company I work for do anything possible to outsource even if the total cost to the company was higher than not outsourcing a part. We moved some manufacturing from the US to Mexico about 18 months ago. It helped the local US plant finances, but the Mexico plant has been a disaster. The cost to the company in terms of air shipping, scrap, and extra warranty cost certainly exceeds the cost saved by Mexican labor. That is before the new tariffs take effect.
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So far as I can tell, the answer for this question will be in "Annex I" of the proclamation. That has yet to be released. As it looks now, the tariffs are specifically for automobiles defined "passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks (collectively, automobiles)."
Motorcycle regs typically fall into line with small motors, UTVs, snow mobiles, boat engines, etc. It's likely motos will not be included in the tariff. Time will tell.
Japan has a 25% on U.S. vehicles.
A few will remember this. This changed the cost of Motocross.
-----------------------------
U.S. RAISES TARIFF FOR MOTORCYCLES
April 2, 1983
In an unusually strong protectionist action, President Reagan today ordered a tenfold increase in tariffs for imported heavyweight motorycles.
The impact of Mr. Reagan's action, which followed the unanimous recommendation of his trade advisers, is effectively limited to Japanese manufacturers, which dominate every sector of the American motorycycle market.
The action was exceptional for protecting a single American company, the Harley-Davidson Motor Company of Milwaukee, the sole surviving American maker of motorcycles.
The only comparable trade action by this Administration, the President's decision last May to impose quotas on sugar imports for the first time since 1974, was aimed at an entire industry.
''We're delighted,'' said Vaughn L. Beals, Harley-Davidson's chairman. ''It will give us time that we might otherwise not have had to make manufacturing improvements and bring out new products.''
The rest is here: https://archive.is/BOVXI
A huge point you are missing is that what is happening in the US, is happening in EVERY developed country. Robotic automation, AI and other technology results in less need for human manpower or brainpower. For the little manpower still needed, and to some extent the brainpower, to maximize profits, private companies are outsourcing that to countries that have much lower labor costs and where people are willing to work long hours in poor conditions. It has long been clear this was coming and the only way to stop it would be to throw away our computers and cease all technological advancement which is very unlikely. So many of you have blamed this on US politicians when this is all being driven by technology and private corporations in every country. Unfortunately, Americans tend to have a poorer understanding of the world and more often blaming the wrong parties.
The US economy has actually been quite strong the last few years, and it will all be flushed down the toilet with the new extreme policies being implemented, and it is about to get much worse for the average Joe, in a way we may never fully recover from. The problem that has existed despite the strong economy is that most of the wealth from the strong economy is going to extremely wealthy people (top 0.5%) and the few in corporate executive suites (EVP and up) at the expense of their employees. Over the last 10 years, CEOs have become super agressive in getting their board of directors to approve huge pay increases while cutting benefits and pay for everyone else in the company. I have seen this first-hand. Half the US voters have sped up this very bad trajectory by giving billionaires the keys to all governmental power and lawmaking.
We can't find a solution until more of us correctly understand the problem. The solution will involve taking back control from corporations and billionaires, getting them to pay equitable tax rates, and sharing the wealth more with the people who work and buy from them through stronger employment and anti-trust laws that are now being dismantled right before our eyes. That still leaves the fact that every developed country has fewer high paid skilled jobs and a lot more low-paid service jobs. To give the wider population the financial security they want with the reality described above, it will require a more extreme solution that is the opposite direction of where we are going now. To keep people distracted from the real cause, the people who benefit from this inequitable balance in the economy, they first told you to blame the government (the "swamp"), then they told you to blame immigrants and minorities, and now they are convincing you that it is other countries to blame, even Canada, a long trusted trading partner and one of the least protectionist countries on the planet. Too many are falling for this distraction and not aiming their frustration and energy at the real cause,
Um.......No. Your way above your pay grade. Super complex subject matter. This thread should be axed. Let's stick to moto, not politics
Never thought I'd see incoterms get mentioned on a moto board, this guy supply chains.
Hopefully we don't get any bullwhip boys
The US has announced a 20% tariff on the EU and a 24% tariff on Japan.
If the manufacturers pass these cost on, this will likely raise the price of European bikes sold in the US by 12-13%, and Japanese bikes by 14-15%.
Sad part is the U.S. doesn't have MX or Off Road bike producers. Off road riders are caught in the crossfire.
But that's ok with me. Someone needed to punch the rest of the world in the face.
Funny because at that time 1983 no one was selling a bike to compete with HD (the Tariff was for heavy weight bikes) and Honda was already producing Goldwings in this country. Again these are across the board moves that have collateral damages. I say suck it up for six month and see what happens. I'm really wanting to see how this works out.
This will go away over night if Japan drops the tariff against us...... Just sayin
A major piece most ppl are overlooking is our dysfunctional politics are eroding trust in the American economy and system. Why would anyone move an entire manufacturing and supply chain to the US if the tarriffs might just be taken off again next month? Like has been happening for the last few months. On top of that why would anyone do that when in 4 years it could all swing back in the opposite direction. There is 0 reason to trust that this will last 6 months let alone 6 years.
With the bipartisan chips act we had tsmc semiconductors building a multi billion dollar fab in Arizona. Once the new administration came in they said theyre going to try to kill it. That doesnt exactly bring confidence that if you decide to move manufacturing to the US that it will be a good idea for the long term. If we will reneg on semiconductors well reneg on anything. Semiconductors are the top of the food chain in national security and manufacturing cost and complexity. Smart companies will see that the US is a basket case right now and stay away from all of that. Theyll just pass on the cost to consumers like everyone else is going to and hope that in a few days/weeks/months things will change. Theres an infinitely higher probability of that than the US sticking to any type of coherent medium/long term plan right now.
It's odd so many of you are OK to pay 20% more for a bike in order to "protect" the non existent American competition (there are no American dirt bikes). Why? It's not like some new American dirt bike company will form because of this...
You can maybe argue for tariffs on other products, but how can you possibly argue for this? What does it accomplish? This tarriff hurts everyone, including us (an American company, making parts in America, from American materials) as people have less money for aftermarket parts. We're already hurting because of material tariffs (and yes, we buy US made materials) and we're seeing fewer sales to Canada now that all of our parts cost Canadians 20% more due to reciprocal tariffs (and we don't see a dime of it).
There is nothing positive whatsoever from a tarriff on foreign off road motorcycles coming into America.
What hasn't be discussed is the effect on US owned multinationals like PepsiCo, Coca-Cola, Tyson Foods, Kraft Heinz, Mondelez International, General Mills, Conagra Brands, and Campbell Soup, who make significant portions of their revenue outside the US, their products can be found on supermarket shelves around the world.
If there is consumer backlash internationally, similar to the Canadian backlash against Jack Daniels, their bottom lines, share prices and many peoples 401ks will be effected.
Pit Row
A bump in the road, in 1,5years the world has forgotten about this and the stock market will be booming. Yes, the next 12months will be a bit shaky, but just wait and see... (that's my prediction based on everything else that has happened the last 40years, then if that is right or wrong, we'll see)
Apparently it works.
Volvo Cars just announced (and it has not even gone 24h) that they will move more production to Charleston, South Carolina.
...now Volvo is smaller than Honda (or?, I haven't googled it), so maybe a drop in the ocean but congrats to people in South Carolina, more jobs for you!
It's a plus for the aftermarket as many folks will upgrade their ride rather than buying new.
Maybe some new, made in the USA triple clamps?
Why are there no tariffs on Russia or Belarus?
Volvo Cars? As in the company owned by a Chinese conglomerate?
The chart Trump showed says "tariffs, currency manipulation, and trade barriers". Currency manipulation is a big problem that puts US made goods at a pricing disadvantage. I wish he had put in wage and environmental factors too but maybe that is baked into the number. We all know China dumps toxic waste wherever/whenever they want which is much cheaper than actually disposing of it properly. They also in some cases use actual slave labor.
US trade with Russia is heavily sanctioned due to the Ukraine invasion.
Trade with the US is now heavily sanctioned because we are very dumb.
Totally correct, Geely (Chinese) owned Volvo Cars.
Has anyone heard from the world financial expert MxAddic ??? I have been missing the insults and blatant stupid takes since the KTM situation collapsed on all of his conspiracies. Surely, his single digit IQ will chime in soon on this too.
It is not a plus. Many of our sales come from people who just bought a new bike. We do have sales from people upgrading, but once they've upgraded, they're set. If they buy new bikes less frequently because of higher costs, then there are less bikes out there to upgrade and therefore fewer sales.
We now see far fewer sales to countries that have imposed retaliatory tariffs. But Xtrig (a foreign competitor) does not have to deal with those tariffs, so they'll see more sales, which certainly isn't beneficial to an us, an American company.
Further, all of our costs go up due to tariffs. Raw materials go up (American aluminum increases in price when Chinese aluminum goes up due to tariffs). Ands despite the vast majority of our parts being of American origin (see https://www.luxonmx.com/made-in-usa.html), some are not available here. Off-the-shelf parts all go up by 20% now as most of those are foreign without American alternatives. We simply can't get American made steering bearings. With tariffs, steering bearings cost us 20% more.
We use OEM bearings, and our cost on a Yamaha steering bearing is $42. We use two of those in our Gen3 Pro clamp, so $84 our cost, which now goes up 20% for no good reason. We could go with a less expensive Chinese All Ballz bearing like some of our competition does, but I believe in supplying our parts with equal or better bearings than stock. An aftermarket upgrade should not downgrade bearings! So we have to eat that cost (bad), pass it on to the customer (bad), downgrade to a Chinese bearing (bad), or simply not supply bearings with clamps (bad, as most people don't own a press and it's super inconvenient).
So, how again is this a good thing for anyone but our government collecting everyone's money?
But what if you just made your clamps in America?
/sarcasm
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