Beef Duty May Join Chicken Tax in the Barnyard, Would Raise Price of Euro Scooters and Motos 100 Percent

Much to the chagrin of a couple of generations of small truck enthusiasts on this side of the Atlantic Ocean, the United States got into a bit of a trade tiff with France and Germany over a protectionist tariff the European countries had placed on imports of American chicken in the early 1960s. The result was a 25-percent tariff levied on potato starch, dextrin, brandy, and light trucks imported into the U.S. Brandy was listed to retaliate against the French while the light truck duty targeted commercial versions of the VW Type II.

Due to another trade dispute over a different foodstuff, in this case beef, the Office of the United States Trade Representative (OUSTR) has proposed a 100% tariff on small to medium displacement motorcycles and scooters manufactured in the European Union. Motorcycles and scooters from 50 to 500 cc displacement were tucked in at the end of a long list of beef, pork, and other food products covered under the proposed duties.

It should be pointed out this has absolutely nothing to do with President Trump’s protectionist remarks concerning Harley Davidson in his Feb. 28 speech to a joint session of the U.S. Congress. It’s part of a long-standing trade dispute and, in any case, the scooters and motorcycles that would be affected do not directly compete with any U.S. made bikes as Harley Davidson and the Polaris owned brands only produce large displacement vehicles.

The proposed duty actually has to do with an EU ban on the importation of beef raised with growth hormones, which is widespread in the U.S. cattle industry. That industry has lobbied for years to retaliate and a similar tariff proposed in 2008 was killed due to concerns by U.S. motorcycle and scooter enthusiasts. The current proposal is a result of the beef industry asking the government to act under procedures specified in the 1974 Trade Act.

As far as motorized two-wheeled vehicles are concerned, it seems makers of scooters like Vespa, Aprilia, and Piaggio would be most affected, but many off-road bikes that BMW, KTM, and Husqvarna manufacturer also have less than 500 cubic centimeters of displacement.

The American Motorcyclist Association has expressed concern that the increased tariffs would unemploy Americans who work for importers and dealers of those brands. There are also concerns that there will be fewer new riders if small-displacement dirt bikes get more expensive as those are often the first motorcycles for young people. KTM is a big player in the North American off-road market, as is Husqvarna.

The motorcycling community again mobilized (no pun intended) against the proposed duties.

“Should the availability of motorcycles be hindered by these unjustified trade sanctions, dealerships may close, leaving countless Americans without jobs,” Wayne Allard, AMA vice president of government relations, said in a January statement.

Allard’s remarks were amplified by AMA spokesman, Peter terHorst. “It’s not just the bikes — it’s also the bike dealers, and sales of apparel, and sales of parts,” he said.

Consumers will still have choices. There are plenty of Japanese and Chinese makers of small displacement dirt bikes and scooters that won’t be affected by the tariffs. In fact, the majority of imported small displacement motorcycles and scooters come from Asia. However, if their European competitors’ prices go up, Honda, Suzuki, Yamaha, and the cheap Chinese scooter industry are not going to lower their own MSRPs.

The period for public comment closed at the end of January. Over 11,500 comments were submitted by members of the public and interested concerns, and a public hearing was held Feb. 15th. No word yet on when a decision from the OUSTR will be forthcoming.

[Image Sources: Wikimedia, KTM]