Initially it looked like the EU tariffs would only concern motorcycles under the 500cc limit, but the reality is a lot worse.

As reported earlier, the European Commission is responding to the United States’ decision to impose tariffs by implementing countermeasures designed to match the economic impact of those tariffs. After the U.S. decided to impose a 25% tariff on up to €26 billion worth of European Union (EU) steel, aluminium, and related products, the EU plans to reinstate tariffs that were previously introduced in 2018 and 2020 on certain U.S. imports, effective from 1 April 2025. Additionally, the EU is planning to introduce further measures by mid-April to maintain ‘economic balance’.

One specific countermeasure confirmed by the European Commission is the imposition of a 50% additional duty on U.S.-origin motorcycles with engine capacities over 500cc, starting on 1 April 2025.

The European Commission is also preparing a broader second phase of countermeasures, scheduled for April 13th. This expanded proposal could include tariffs on all motorcycles under 500cc, including electric motorcycles. However, this second phase list is still under consideration and subject to public consultation.

• Tariffs generally result in higher consumer prices, which could lead to a slowdown in motorcycle sales in the EU, particularly in the premium motorcycle segment. Tariffs can also have a dampening effect on motorcycle culture and tourism-related motorcycle industries in regions where motorcycling is popular.
• While the tariffs target U.S. products, European manufacturers like BMW, KTM, Ducati, and Triumph could be indirectly affected by supply chain disruptions if components or materials from the U.S. become more expensive. Potential retaliatory measures from the U.S., targeting European-made motorcycles or related products, would hurt exports.
• The trade dispute and proposed tariffs pose serious challenges to the European motorcycling industry and the motorcycling community by increasing costs, limiting consumer choice, and potentially slowing innovation.
• Electric motorcycle manufacturers could be particularly hard-hit, just as the sector is trying to expand, potentially discouraging innovation and investment in electric two-wheelers.
• If the EU reinstates tariffs on U.S. imports and escalates the trade conflict, the U.S. could respond with retaliatory tariffs on European motorcycles. This could lead to higher costs and reduced competitiveness for European motorcycles in the U.S., particularly affecting premium, performance, and electric models.

‘Motorcycles should not become collateral damage in broader trade conflicts.’

Instead of allowing this dispute to escalate with retaliatory measures, the European motorcycle industry calls for a negotiated solution for transatlantic trade. The U.S. and EU motorcycle industries want fair transatlantic trade and to be able to continue delivering our highest quality products to our passionate customers across Europe and the United States. Antonio Perlot, Secretary General of ACEM, the association of European motorcycle manufacturers, said: “Whilst we recognise the need for a balanced response to trade disputes, motorcycles should not become collateral damage in broader trade conflicts. The motorcycle industry provides high-quality manufacturing and related jobs, mobility and access to employment for millions of people and is a fundamental economic driver. As nobody wins in trade wars, we strongly call for a return to reason and for both parties to reach a fair solution”.

Written by Wim Taal

This article is subject to FEMA’s copyright