Cycle News is a weekly magazine that covers all aspects of motorcycling including Supercross, Motocross and MotoGP as well as new motorcycles
Issue link: https://magazine.cyclenews.com/i/798489
IN THE WIND P44 TRUMP'S HARLEY-DAVIDSON COMMENTS EXPLAINED D uring President Donald Trump's recent ad- dress to Congress, your ears might have perked at the mention of Harley-Davidson. The president had met with heads of Harley-Davidson prior to the address, and Trump opted to cite their business case in his discussion of international trade issues facing Americans. Off-road motorcyclists were likely even more intrigued when Trump started talking about mo- torcycle tariffs, specifically a 100 percent tax that was making it "very hard to do business with other countries…" also citing the need to "create a level playing field for American companies and our workers." The comments made by Trump in the address were somewhat vague, begging the question: Was this an acknowledgement of the "bikes for beef tax" issue the off-road motorcycle community has been rallying against? Dubbed the "bikes for beef tax," a proposed U.S. tariff was put forward by the Office of the U.S. Trade Representative (USTR), part of an agri- cultural trade issue between the U.S. and Europe involving laws limiting the import of American beef. Said to be retaliation to the EU, the U.S. tariff lev- ies some heavy taxes on European goods—mostly food and agriculture-related items such as meats, cheeses and vegetables. But for some unknown reason, motorcycles and two-wheel vehicles un- der 500cc were lumped into the mix. Find details of the tariff at https://www.regula- tions.gov/document?D=USTR-2016-0025-0001 The tariff dates all the way back to the late 90's, and it seems to rear its ugly head every time there is an administration change. Each time the motor- cycle community opposes it, due to the devastat- ing consequences it would have on the American off-road motorcycle community. Most imports from major European motorcycle companies such as BMW, Ducati and Moto Guzzi are over 500cc, but companies such as KTM, Husqvarna, Vespa, Beta, GasGas and Piaggio would be devastated by a 100 percent tax. The president broached the topic of motorcycle tariffs by citing the need to "create a level playing field for American companies and our workers," in his joint address. Yet it was unclear exactly which countries and tariffs he was referring to. President Trump's words in his address to Con- gress were as follows: "At our meeting, I asked [Harley-Davidson representatives], how are you doing, how is business? They said that it's good. I asked them further, how are you doing with other countries, mainly international sales? "They told me—without even complaining, because they have been so mistreated for so long that they've become used to it—that it's very hard to do business with other countries because they tax our goods at such a high rate. They said that in the case of another country, they taxed their motorcycles at 100 percent. "They weren't even asking for a change. But I am. "I believe strongly in free trade, but it also has to be fair trade. It's been a long time since we had fair trade." The comments prompted questions in the mainstream media, as well, with many asking what country the president was referring to. The answer was quickly narrowed to India, as it is the only country with a 100 percent tariff on motorcycles. But this revelation seemed to present more confu- sion, since Harley-Davidson has a plant in India, and would therefore not be subject to an import tariff, right? A story by CNN Money titled "Actually, Harley- Davidson Doesn't Pay India's 100% Motorcycle