I’m surprised that no one is talking about this, unless I missed the thread. If things weren’t challenging enough, here’s more trouble.
All of the OEM’s are now having to pay, in addition to the 15% (or higher in some cases depending on the country of manufacture) a 50% tariff on the portion of the bike that is made of steel.
For example, if 40% of a bike is steel, and the total bike’s cost is $10,000, that is an additional $2000 in tariffs above the already existing $1500 for a total of $3500, or 35% combined.
Same goes for motorcycle parts, anything made of steel is now tariffed at 65%.
Interesting times ahead.
This thread is going to go as well as Truck’s “tranny problems” thread.
This isn’t a political thread, if that’s what you mean. It’s a pretty important topic and it would be nice if people could check their politics at the door. Regardless of why the tariffs are in place or who put them there. It’s something we’re going to be effected by and the industry is scrambling to figure out how to deal with it.
I agree with you, but people here absolutely cannot behave themselves when it comes to anything even remotely political.
Not sure what dirtcycle is 40% steel? 😄
This will have little to no effect on the dirtbike industry.
This thread should have been started in the dumbgeon
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The 50% tariff is on steel and aluminum.
Well, that's not what the op said... but regardless, chairman Powell came out a couple of days ago saying that the tariffs imposed earlier this year didn't have the effect that he initially thought they would. Guess we'll see what happens. I don't believe that the sky is falling.
You'll have to see how the tariffs are implemented, and how or if retailers pass costs on.
The HTS (import tariff) codes for 250-499cc, 800cc+ motorcycles and motorcycle parts are included in section 232 aluminum/steel tariffs for steel composition but not aluminum. That is fortunate, because if it included the aluminum components too, you’d be looking at 70+% of the bike.
Add up the weight of a frame, hardware, axles, bushings, footpegs, bearings, clutch, transmission, flywheel, crank, spokes, fork tubes, brake rotors etc etc. It’s a significant % of the bike, especially steel framed bikes.
Don’t get hung up on the 40% figure, it was not meant to be an exact number but rather used as an example. Maybe it’s 30%. I’m sure it is higher on entry level bikes. Either way, it’s a problem and you’re going to see it significantly effect prices.
Margins in this industry are probably a lot smaller than what many would think and nobody can afford to “eat the tariffs.”
Good point, I missed that...
I can tell you how they’re being implemented..
As a consumer, imagine ordering a replacement brake rotor from a retailer in Europe or Japan and you will be charged 65% tariffs by the broker to clear it through customs. That $150 rotor will cost you almost $250. This is what importers are now dealing with.
Nobody can absorb that, it’s the end consumer that is going to feel the biggest impact.
If an importer can afford to eat these tariffs, their profit margins prior to this must have been astronomical.
Hasn't been deleted yet so this one is already doing better.
Some will still argue that the consumer pays nothing on the tariffs being raised.
I will pay nothing, I live in Australia!
Soooo 125’s and 249.9cc 2-strokes making a comeback?
250’s (249cc) and under currently are not effected by this..
Really can't figure out how this is NOT a political problem.
🤔
Maybe KTMs will get an exemption from the big orange guy.
😄
Aaaaand there it is. She's off the rails boys. 🤪
Well, that decision is not exactly falling from the sky...
I'd even bet it has a huuuuuuuge signature on it.
Pit Row
That's not how tariffs work.
You're not paying tariffs on the finished good (motorcycle) plus any raw materials that are in that motorcycle. It's either tariffed on the raw materials (if the bike is made in the US with raw materials sourced from outside), or tariffed on the finished motorcycle.
Also the retail price is irrelevant. If a manufacturer produced the bike for 4k, that's what they're paying duties on
That's how tariffs normally work, but not under the current administration, the steel tariff is being applied to the declared value of the steel in the bike...
That only applies to what they call derivatives of steel. It's a closed list of specific products. Like a box of staples or nails. A motorcycle isn't considered a derivative of steel
It’s not a political thread, but tariffs are political. The only solution to removing or invalidating tariffs are political, so naturally the thread will become political.
Unless you expect everyone to just give a 🤷♂️ emoji and say “yes this sucks”, the only insight one can give on this topic is going to be political.
That's what Last2Stroke is saying: motorcycles 250-500cc (8711.30.00) looks like it is on the "closed list of specific products." See his screenshot above.
Imagine ordering it from a US company that manufactures out of US steel.
Why would the competition dirt bike companies, Honda, Yamaha, Suzuki, Kawasaki, Triumph, KTM, Ducati, Beta, Stark, Sherco, care about ordering US Steel for their parts?
Not a single one of those are American.
He's trying to be cute and argue this is a good thing because the US will just magically start producing things again using only US sourced materials and costs will come back down and all the unemployed white people will have good paying factory jobs they can support a family on while mom stays home and bowling league on Tuesday nights.....
The 50% steel tariff is covered in 9903.81.91
It applies to everything listed in subdivision (n)...
250-500cc motorcycles are tariff code 8711.30.00...
Is there any company that makes brake rotors for dirt bikes in the US out of US steel?
A US manufacturer utilizing US steel would not be subject to a tariff. I was thinking aftermarket.
I stand corrected. Didn't see his earlier comment.
Last time I checked this list was very short. Looks like they expanded it in August. We pay those tariffs on some products
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