100 Percent Tariffs on European Union Powersports Products Avoided

Decision by United States Trade Representative Good for the Industry

IRVINE, Calif., Oct. 3, 2019 – Proposed tariffs of up to 100 percent on motorcycles, parts, and accessories, coming in from European Union countries, have been staved off – after the Motorcycle Industry Council and member manufacturers testified before, and submitted written comments to, the Office of the United States Trade Representative.

The proposed tariffs, that would have greatly affected the powersports business, came about as part of a dispute regarding certain EU countries subsidizing their large-aircraft manufacturing sector.

Representatives from member companies KTM and Indian Motorcycle, and MIC staff, testified this summer at USTR hearings in Washington, D.C., and made the case against the proposed tariffs. And the MIC, along with motorcycle-manufacturing member companies Cobra, Ducati, Indian Motorcycle, and KTM, submitted written comments to the USTR opposing these tariffs. In a show of transcontinental industry support, ACEM, the European Association of Motorcycle Manufacturers, also submitted written arguments against the proposed tariffs.

“We have been actively engaged in this dispute from day one, both in Washington, D.C., and also in Europe, to protect our dealers, support the motorcycle industry and allow our customers to continue to ride and experience motorcycling,” said John Hinz, CEO of KTM North America. “Our brands and dealers have been operating in the United States for over fifty years and it is our responsibility to protect and grow the future of motorcycling. We commend the USTR’s recognition of the negative impact that the proposed tariffs would have had on our U.S. business, partners, dealers and customers.”

“Had the tariffs been enacted, that would have meant extremely high prices for our American consumers of European motorcycles, parts, and accessories,” said Erik Pritchard, incoming MIC president and CEO. “Increased costs would have even discouraged motorcycle riders from performing routine but critical maintenance, such as brake pad and tire replacements, due to potential doubling on the price of parts.”

“I want to thank Congressman Tim Walberg and Congressman Michael Burgess who are the co-chairs of the Congressional Motorcycle Caucus,” said Scott Schloegel, senior vice president for government relations at the MIC. “They sent a terrific letter to the United States Trade Representative opposing additional tariffs, which are taxes paid by American consumers. They have been fantastic champions of the industry and our consumers, and we thank them for their continued support for something that brings joy to millions of Americans every single day: motorcycling.”

MIC staff at the Government Relations Office will continue to monitor developments in Washington, in case the USTR proposes any changes to the current list of products and industries impacted by tariffs.

The Motorcycle Industry Council exists to preserve, protect, and promote motorcycling through government relations, communications, and media relations, statistics and research, aftermarket programs, development of data communications standards, and activities surrounding technical and regulatory issues. As a not-for-profit national industry association, the MIC seeks to support motorcyclists by representing manufacturers, distributors, dealers, and retailers of motorcycles, scooters, ATVs, ROVs, motorcycle/ATV/ROV parts, accessories and related goods and services, and members of allied trades such as insurance, finance and investment companies, media companies and consultants.

The MIC is headquartered in Irvine, Calif., with a government relations office in metropolitan Washington, D.C. First called the MIC in 1970, the organization has been in operation since 1914. Visit the MIC at mic.org.