Tariffs Threatening Powersports Industry

Ours is an industry that depends on global commerce.

The Motorcycle Industry Council (MIC) is sounding the alarm over newly expanded 50% tariffs on steel and aluminum “derivative products,” warning that the move could drastically increase the cost of motorcycles, ATVs, side-by-sides, and parts — and ultimately threaten dealers, distributors, and aftermarket businesses across the U.S.

According to MIC, the tariffs mean that nearly every powersports vehicle with foreign-produced steel components is now subject to steep new costs. For example, a $10,000 motorcycle could jump to $13,000–$14,000 at retail. Even U.S.-built vehicles aren’t immune, as many rely on imported steel and aluminum for production.

The tariffs, expanded August 18 to cover more than 400 new product codes, will affect:

Most motorcycles with foreign steel content
ATVs and side-by-sides with foreign steel components
Motorcycle parts and accessories with imported steel

MIC leaders say the impact could ripple through the industry, raising prices, reducing sales, and putting more than 110,000 American powersports jobs at risk.

The example stated suggests a machine that is currently retailing for $10,000 will jump to roughly $14,000 on account of these new tariffs.

The MIC Board has endorsed a multi-pronged strategy that includes:

Sending letters to President Trump and Commerce Secretary Howard Lutnick outlining the impact on powersports businesses
Mobilizing MIC members and dealers to write Congress requesting tariff relief
Working with lawmakers to push for exemptions and highlight potential job losses in their districts
Hosting members of Congress at member facilities to showcase the industry’s economic role

How to help

MIC is requesting that dealers share business impact data by September 2 to strengthen its advocacy efforts. Input will be aggregated across the industry to show lawmakers how tariffs could cripple the $51 billion U.S. powersports sector. Dealers will also soon be able to participate in an online campaign to send letters directly to their Senators and Representatives. They can be sent here.

Tariffs ruled unconstitutional

A federal court recently ruled that the Trump administration’s expanded tariffs on steel and aluminum derivative products are unconstitutional, citing executive overreach. While the ruling is a positive development for industries like powersports, it does not provide immediate relief, according to news reports. The administration may appeal, and tariffs will remain in effect while legal battles continue.

To learn more, click here.