Canada slaps 50% tariff on US-made motorcycles over 800cc
The US-Canada trade fight has reached the motorcycle industry, with US-made motorcycles equipped with engines larger than 800cc now facing a 50% tariff when imported into Canada.
The new tariff took effect today, September 8, as part of Canada’s latest round of counter-tariffs against U.S. goods.
The move puts several American-made bikes in the crosshairs, including motorcycles from Harley-Davidson, Indian Motorcycle and Buell. Harley-Davidson is particularly exposed because much of its lineup uses engines larger than 800cc. Even the Nightster, one of its smaller models, has a 975cc Revolution Max engine.
Indian Motorcycle also has a large-displacement lineup, while independent American manufacturer Buell builds its motorcycles in Grand Rapids, Michigan, with current models using a 1,190cc V-twin.
Motorcycles get the highest tariff
Canada’s motorcycle tariff is part of a broader package covering about USD 27.6 billion (around PHP 1.73 trillion) worth of U.S. imports. The counter-tariffs range from 15% to 50%, with motorcycles above 800cc placed in the highest category. Canada said the measures respond to new U.S. Section 338 tariffs and took effect at 12:01 a.m. on September 8.
For motorcycles, the 50% tariff is calculated using the vehicle’s customs value. For example, a US-made motorcycle with a customs value of CAD 25,000 (around PHP 1.13 million) would incur a CAD 12,500 tariff, equivalent to roughly PHP 567,000, before other taxes and costs.
That does not necessarily mean the motorcycle’s retail price will rise by 50%. The additional cost can be absorbed partly by the manufacturer, distributor, or dealer, or passed on to the customer.
The tariff also strictly depends on the motorcycle’s country of origin. An American brand building a motorcycle outside the United States would not automatically have the same exposure. Electric motorcycles are likewise outside this particular tariff classification because the measure specifically targets motorcycles powered by internal-combustion piston engines.
Canada also exempted U.S. goods that were already in transit when the new tariffs took effect.
It’s quite a blow to American motorcycle brands and their Canadian customers. For Harley-Davidson, Indian Motorcycle and Buell, the new tariff could push prices higher and give Canadian riders more reason to consider Japanese, or even Chinese, alternatives.
