The Trump administration has announced two new trade actions that could affect motorcycle manufacturers and suppliers, imposing additional duties on certain Canadian imports while creating a new incentive program aimed at expanding domestic primary aluminum production.
This is a press release from the MIC…
Beginning August 19, certain products imported from Canada will be subject to an additional 50% ad valorem duty under Section 338 of the Tariff Act. Section 338 authorizes the president to impose tariffs on imports from countries found to discriminate against U.S. commerce, although the authority has never previously been used to levy tariffs. The proclamation identifies several HTS categories tracked by the Motorcycle Industry Council, including motorcycles with engine displacements greater than 800cc, safety headgear, and certain athletic and sports equipment. Products already subject to Section 232 tariffs are exempt from the additional duties.
In a separate proclamation, the administration directed the U.S. Department of Commerce to establish an onshoring incentive program for companies that build, expand, or refurbish U.S. primary aluminum production facilities. The program is intended to complement the Section 232 aluminum tariffs, which were expanded earlier this year to encourage domestic production. Companies with approved projects may qualify to import primary aluminum at half the otherwise applicable tariff rate while investing in new U.S. production capacity.
The announcements build on a series of recent trade actions affecting the motorcycle industry. Earlier this year, the administration expanded Section 232 tariffs on imported steel and aluminum, and additional Section 301 investigations into foreign trade practices remain underway. Together, the actions reflect the administration’s continued use of trade policy to encourage domestic manufacturing while addressing what it considers unfair trade practices.
“The administration’s use of Section 338 alongside other trade authorities reflects an evolving approach to trade policy,” said Scott Schloegel, MIC Senior Vice President of Government Relations. “MIC Government Relations will continue monitoring these actions and engaging with policymakers. Because the impact of these actions will vary, companies should consult their own trade counsel to understand how they may be affected.”
