IN
THE
WIND
P48
U.S. Targets
Motorcycles in
EU Trade Wars
H
ere we go again.
Trade wars are heating up,
and, once again, motorcycles
are caught in the crosshairs. This
time it's trade tensions with the
European Union, and the United
States' response to the ongoing
dispute between aircraft manu-
facturer subsidies, with EU's
Airbus in one corner, and Ameri-
can rival Boeing in the other—a
14-year-old quarrel that the World
Trade Organization is struggling
to litigate. The Trump Administra-
tion has decided "the time has
come for action," and has laid
down a proposed $11 billion in EU
tariffs. The White House pub-
lished a list of products on April
8 that would be hit by retaliatory
duties, which includes mostly
cheeses, wine, airplane parts,
and also motorcycles 500-
700cc, as well as "parts and ac-
cessories for motorcycles (includ-
ing mopeds)." (HTS subheadings
8711.40.30 and 8714.10.00)
The proposed 100% tariff could
have significant consequences
for European-based motor-
cycle manufacturers, including
KTM AG. The Austrian-based
manufacturer, home to KTM and
Husqvarna Motorcycles, cur-
rently produces nine motorcycles
that would fall into the effected
category, with multiple models
based on the 510cc and 690cc
platforms. Representatives from
KTM are currently working with
members in DC to get the motor-
cycles and motorcycle accesso-
ries off the list.
While not a lot of European
motorcycles fall into the oddly
targeted range of 500-700cc,
the parts and accessories line
item could have much more far-
reaching consequences for Euro-
pean motorcycle manufacturers
including Ducati, BMW, Triumph
and Vespa.
The issue already has the at-
tention of the Motorcycle Industry
Association (MCIA) in the UK. In
an April 12 statement, the MCIA
announced it is working with the
British government to address
the issue: "The U.S. Government
have announced that they will
likely introduce a 100% tariff on a
number of imports from the EU,
which will have a direct impact on
several product groups from our
industry. Please be aware that
we are working closely with the
UK Government and had already
scheduled a meeting with the
Minister for early May."
As of now, the product list
is "preliminary" and is open
to public comment. The U.S.
International Trade Commission
will have a hearing in DC on May
15 before finalizing the list, which
the U.S. aims to total $11 billion
per year, directly countering the
exact amount of damage it claims
comes from the EU aircraft sub-
sidies.
"This case has been in litiga-
tion for 14 years, and the time has
come for action," said U.S. Trade
Representative Robert Light-
hizer in an April 8 press release.
"Our ultimate goal is to reach an
agreement with the EU to end all
WTO-inconsistent subsidies to
large civil aircraft. When the EU
ends these harmful subsidies,
the additional U.S. duties im-
posed in response can be lifted."
Jean Turner
Is the cost of
a KTM 690
Adventure R about
to double?
