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Polaris Moving Production to Europe Because of Tariffs?

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President Trump’s trade war is about to see another player in the motorcycle industry jump ship from American soil, and this time it is heavyweight Polaris Industries.

According to a report by the Minneapolis/St. Paul Business Journal, Polaris is considering moving some of its production capacity to Europe, eyeing a production facility in Poland that would build units for the European market.

The move is a direct response to the retaliatory tariffs imposed by the European Union on motorcycle imports, which itself was a response to the Trump Administration’s taxing of steel and aluminum imports.

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Harley-Davidson Moving Production Because of Trade War

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We have already reported on the European Union’s 25% tariff increase (6% to 31%) on American-made motorcycles, and how those import taxes are going to affect in particular Harley-Davidson. The short version: not well.

Seeing that writing on the wall, Harley-Davidson has responded to Europe’s retaliatory tariffs, though it is perhaps not the response that the American government was hoping for when it began taxing aluminum and steel from European Union member states.

As such, Harley-Davidson plans to shift its production for motorcycles destined to the European market from its factories in the United States to it facilities abroad.

“Increasing international production to alleviate the EU tariff burden is not the company’s preference, but represents the only sustainable option,” the iconic American brand is reported saying in a regulatory filing.

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European Union Tariffs on US Motorcycles Begin Today

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Today is the day. Today is the day that the European Union begins taxing the importation of motorcycles from the United States into Europe.

A retaliation to the Trump administration’s tariffs on aluminum and steel, the EU will now impose a 25% tariff increase on all motorcycles, 500cc and up, coming from the United States.

This means that the new tariff provisions will affect both Harley-Davidson and Indian, but will not affect Zero Motorcycles, as electric motorcycles are not included in the trade war provisions.

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Harley-Davidson Speaks Out About Tariff Plan

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If you haven’t heard of the Trump administration’s plan to impose sizable tariffs on steel and aluminum (25% and 10%, respectively), then you have done a remarkably good job of ignoring current political events.

Trump’s plan caught many by surprise, and the details of the tariffs are still forming, but one thing is clear: it doesn’t bode well for Harley-Davidson.

Like most manufacturers, an increase on raw steel and aluminum will mean an increase in costs, but Harley-Davidson also has the dubious honor of being part of the European Union’s focus for retaliation.

This is because the EU says it will tax motorcycle imports from the United States, in retaliation for Trump’s tariffs on steel and aluminum.

Surprisingly, Harley-Davidson has been quiet about all these maneuvers in the political space…until now, that is.

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A&R Pro

What A Trade War Means for Motorcycles

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Strangely enough, we have talked about trade wars several times before, here on Asphalt & Rubber, as the Trump administration has been keen to use this tool in its toolbox, often with effects that reach into the motorcycle industry.

The first time around, we talked about how the Trans-Pacific Partnership (TPP) affected the motorcycle industry, namely Harley-Davidson, and how the United States’ withdrawal from the agreement would likely be a negative effect for US motorcyclists.

We have also had to talk about how fighting over beef imports could lead to possible tariffs on small-displacement European motorcycles in the United States, a tariff that would seriously hurt Piaggio/Vespa scooter sales and KTM dirt bike sales.

This week a new specter is on the horizon, as the Trump administration is eyeing tariffs on both steel and aluminum, at 25% and 10% a pop – respectively.

Naturally, the increase in the cost on importing raw metals into the USA is going to have an adverse effect on manufacturing-based businesses, but not all of these companies are affected equally when tariffs are imposed.

So, let’s take a look at what this really means for the American motorcycle industry.

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Opinion/Editorial

Why the USA Might Tax European Motorcycles Over Beef

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What do chickens have to do with potatoes? For that matter, what do chickens have to do with steel? And what do both of those things have to do with tires?

The answer isn’t as obvious as you may think, and this week everyone in the motorcycle industry is asking themselves what European motorcycles have to do with beef exports.

The answer to all these questions is the same though, and it involves the rather unsophisticated motorcycle industry being dragged into the rather complex world of international trade negotiation. Let me explain.

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Opinion/Editorial

What Brexit Really Means for the Motorcycle Industry

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Coverage of Brexit, the United Kingdom’s referendum whether to continue as a member of the European Union, has largely been ignored in the United States, and it certainly hasn’t been a blip on the radar recently within our microcosm of the motorcycle industry.

But of course, the United Kingdom’s place in the European Union will have far-reaching consequences, even in our beloved little two-wheeled world.

If you check the timestamp on the most recent Paddock Pass Podcast posting, you will see that I was up late enough into the evening to get word that the United Kingdom will leave the European Union, with the “Leave” supporters edging out the “Remains” by the narrow margin of 1.3 million votes.

There is a lot of politics at play here, and I don’t care to rehash it, other than to say that it could be a foreshadow of what could come soon in the United States as well. What I do have to say though is an examination of how the United Kingdom leaving the European Union can and will affect the world of motorcycling.

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Victory Headed to the Indian Market in 2012

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Victory Motorcycles is looking to continue its strong sales growth by taking its Harley-Davidson alternative of a product line to the Indian market. Expecting to enter India in Q2 of 2012, Victory will first import fully-assembled motorcycles into the huge Indian market. Victory also plans on setting up an assembly plant, so the company can import partially-constructed machines into the country, and thus sidestep the massive tariffs India levies on fully-assembled motorcycles imports.

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