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

Ronnie Schreiber
by Ronnie Schreiber

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]

Ronnie Schreiber
Ronnie Schreiber

Ronnie Schreiber edits Cars In Depth, the original 3D car site.

More by Ronnie Schreiber

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  • Jagboi Jagboi on Mar 02, 2017

    The rage at all the burger places in Western Canada (the heart of the Canadian cattle industry) is to have beef that is raised without the use of hormones or steroids. Many have signs saying that and feature it prominently in their advertising, A&W is one chain. Many of the high end steakhouses also feature hormone and steroid free beef. It commands a premium for the farmer, so a win all around. And no, burger prices have not gone up.

  • Lou_BC Lou_BC on Mar 02, 2017

    So much for getting Euro Dirt Bikes into the USA. The Japanese are very very happy.

    • See 2 previous
    • Lou_BC Lou_BC on Mar 05, 2017

      @BAFO - poor metaphor. A KTM MX bike is on par with any Japanese MX bike. A KTM "woods" bike is vastly superior to any comparable Japanese offering.

  • SCE to AUX I've never been teased by a bumper like that one before.
  • 3SpeedAutomatic R&T could have killed the story before it was released.Now, by pulling it after the fact, they look like idiots!! What's new??
  • Master Baiter "That said, the Inflation Reduction Act apparently does run afoul of WTO rules..."Pfft. The Biden administration doesn't care about rules. The Supreme Court said they couldn't forgive student load debt; they did it anyway. Decorum and tradition says you don't prosecute former presidents; they are doing it anyway. They made the CDC suspend evictions though they had no constitutional authority to do so.
  • 1995 SC Good. To misquote Sheryl Crow "If it makes them unhappy, it can't be that bad"
  • 1995 SC The letters on the hatch aren't big enough. hard pass
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