IN
THE
WIND
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Trifecta of Trade Wars
T
here are currently three major
tariff issues facing the motor-
cycle industry, and organizations
such as the Motorcycle Industry
Council (MIC) and the AMA are
taking action in these arenas,
along with industry leaders from
multiple manufacturers. We
caught up with them to get some
news from the front lines and find
out what you can do to help the
fight.
1. Bikes for Beef
Yes, this is still a thing.
You may remember hearing
about this a few years ago, but
the "Bikes for Beef" issue is
not dead yet. In part of a long-
running dispute between the
United States and the EU over
Europe's refusal of American
beef, the U.S. Trade Repre-
sentative proposed a retaliatory
tariff that included a 100% tax on
EU-built motorcycles 50-250cc.
The odd inclusion, that seems
squarely aimed at KTM AG, has
been vehemently opposed by
the AMA, MIC and manufactur-
ers, as well as motorcyclists
who sent thousands of letters to
Congress. While this issue is not
completely dead yet, it seems
we are close to a formal resolu-
tion on that front. Let this serve
as a reminder that our efforts can
and DO affect change!
2. China Tariffs
The trade war with China
got started last year with a 10%
tariff, which President Trump
then threatened to increase to
25% at the beginning of 2019.
But trade talks and negotiations
went well and the increase was
postponed. That was until a
tweet came from Donald Trump
on Sunday, May 5 announcing
the tariffs would increase to 25%
on Friday, May 10.
It is on this front that Po-
laris CEO Scott Wine recently
elected to speak out. In a May 8
interview with the Minneapolis/
St. Paul Business Journal, Wine
emphasized that raising tariffs
on Chinese products would be
"downright catastrophic in terms
of impact on the company and
employees."
3. EU Tariffs
This third, rather convoluted,
issue stems from a 14-year-old
dispute over aircraft manufacturer
subsidies. It's a Boeing versus
Airbus, U.S. versus EU issue that
somehow resulted in 500-700cc
European-built motorcycles as well
as motorcycle parts and acces-
sories getting thrown into the mix.
These segments are now facing
up to 100% tariffs, which could
be devastating to more than just
KTM/Husqvarna, that currently
has nine models in the 500-700cc
segment. But the parts and ac-
cessories will have a far greater
impact that will extend to nearly
every motorcycle manufacturer.
