Having given the European Union plenty of notice about his unhappiness with the EU-US trading relationship, mercurial US president Donald Trump duly imposed punitive 25% tariffs on up to £22bn-worth of EU steel, aluminium and derivative exports destined for markets in the USA. But instead of addressing this challenge through sensible trade policy negotiating channels, European Commission supremo Ursula von der Leyen came out with all her guns blazing, loaded with counter-measures likely to fuel a vicious circle of tariff warfare.
Specifically, these imposed tariffs of up to 50% on a wide range of imports from the US, from 1 April. Among them is a 50% additional duty added to US-originated motorcycles above 500cc. Obviously, large-capacity products from Harley-Davidson and Indian are immediately in this particular firing line. A second phase of European Commission retaliation being considered could hit all motorcycle categories below 500cc, as well as electric motorcycles, too.
Reciprocal tariffs from Trump, targeting motorcycle exports from European sources into the US will now become a certainty, European motorcycle manufacturing association ACEM has therefore voiced its disappointment relating to the Commission’s move.
ACEM has pointed out that the motorcycle sector in Europe and the US is deeply interconnected with strong industrial and economic ties. European and American manufacturers enjoy two-way traffic with strong presences in each other’s markets. Tariffs in either direction will disrupt businesses, harm consumers and threaten jobs on both sides of the Atlantic.
Commenting on this stand-off, ACEM secretary general Antonio Perlot said: “Instead of allowing this dispute to escalate, the European motorcycle industry calls for a negotiated solution for fair transatlantic trade and a return to reason.”