Donald Trump Tariff War Could Spell Bad News For US Bike Makers
An impending tit-for-tat tariff war that could take place when Donald Trump comes to power could be bad for US motorcycle makers
With Donald Trump winning the US election in what can only be described as a landslide against Democrat candidate Kamala Harris, all eyes are now looking to the future, and what the Republican President’s first moves from the Oval Office will be.
In preparation for the president’s inauguration, set to take place on 20th January 2025, the European Commission is already reported to have set up a “Trump Taskforce” to help mitigate what many believe will be his first task in hand. Trump has threatened all foreign imports into the USA with a tariff of 10-20 per cent, while goods coming from China are set to be hit with a 60 per cent tax when they land on US soil.
Trump is a strong believer that tariffs on imports to the US are a way of protecting American business and industry, although the countermeasure from the EU could have damaging effects. The European Commission would likely use retaliatory tariffs on American goods coming into Europe, and it’s widely believed that US-made motorcycles, along with Bourbon - most of which comes from distilleries in Kentucky - are at the top of the list.
What could come to the aid of the EU is the states in which Harley-Davidson and America’s Bourbon-making industries reside. Milwaukee, and the state of Wisconsin, is the home of America’s most famous bike maker, and that is a red (Republican) state for 2025. As is Kentucky, a state that the GOP took control of with 64.6 per cent of the vote. Both those states have been rumoured to be at risk of losing their Republican representatives for 2026, something that diplomats in Brussels hope could pile pressure on Trump to hold back on knee-jerk trade tariffs.
Trump Trade Tariffs Could Hurt Harley and Zero the Most
Should those tariffs happen, it wouldn’t be good news for any US bike maker, but in particular, Harley-Davidson and Zero could be among the worst affected. H-D’s share price has been anything but stable in 2024, and for Zero, which focuses solely on electrically powered bikes equivalent to large-capacity petrol engines, the outlook seems equally bleak. Further trade tariffs in retaliation to measures imposed by Trump, could make pedalling their wares in the UK and Europe and even tougher act in 2025.
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Simon (AKA Toad) has been working within the motorcycle industry for more than twelve years, and a member of the motorcyclist family since birth. Growing up around British-built single and twins, it was inevitable that a life on two wheels was on the cards, from a very early age!
