US-made motorcycles could become more affordable soon
By now, you’ve probably seen the buzz about President Ferdinand “Bongbong” Marcos Jr.’s recent meeting with US President Donald Trump. While foreign policy and taxes aren’t our expertise, we understood two key outcomes from this high-level discussion: Philippine exports to the U.S. will face a 19% tariff, while U.S. exports to the Philippines will have a 0% tariff.
In layman’s terms, our goods will be taxed upon entering the US, while their goods will enter the Philippines tax-free.
As riders, our first thought was simple: “Will this finally make the iconic Harley-Davidson—a dream for countless Pinoys—an affordable reality?” This also applies to Indian Motorcycle and any other US-made motorcycle available here, if any.
SRP to SRP
The standard practice among U.S. motorcycle manufacturers is to publish a Manufacturer’s Suggested Retail Price (MSRP), which typically forms the initial “starts at” price at dealerships. This readily accessible data enables a straightforward computation and comparison of a Harley-Davidson model’s U.S. MSRP with its local Suggested Retail Price (SRP).
Taking the Pan America 1250 Special we tested in Northern Luzon in 2021 as an example, it carried a local price tag of PHP 1,400,000. In the U.S., its SRP was USD 19,999. When converted using the average peso-dollar exchange rate at the time, the U.S. price was merely PHP 1,019,750, indicating a notable PHP 380,250 difference in pricing.
Of course, prices of big bikes here are definitely more expensive than in their country of origin. This is due to a complex array of factors, including significant customs duties (often ranging up to 30-40% for non-electric models), an additional 12% Value Added Tax (VAT), and a variable Ad Valorem Tax (according to value) which depends on factors like landed cost and engine displacement.
Beyond these government imposts, we must also account for international freight and delivery costs, importer/distributor margins, and other logistical and operational expenses, all of which are ultimately passed on to the consumer.
With US-made products now facing zero tariffs, will Harley-Davidson and Indian Motorcycles finally be “within reach” for more Pinoy motorcycle enthusiasts?
