Motorcycle Dealers NAICS 441227

Aug 27, 2025 - Expanded Steel Tariffs Impact Motorcycles

• According to a Jalopnik report, an expansion of the Trump administration’s steel and aluminum tariffs to cover more than 400 additional product categories may cause the prices of imported motorcycles to skyrocket. The newly added product codes include selected motorcycles, mopeds, and motorcycle parts. The products face a 50% tariff on their metal content, as of August 18, 2025. One challenge of the expanded tariff is determining what percentage of an item is made with the targeted materials, which increases the compliance burden. One German e-bike maker, Riese & Muller, paused all e-bike shipments to the US in August, citing unpredictable tariffs. The Trump administration has said the tariffs support the revitalization of the American steel and aluminum industries.
• Indicators measuring the collective mood of US consumers show mixed signals, with consumer confidence levels slightly up and consumer sentiment falling. Consumer confidence levels, an indicator of discretionary expenditures, improved in July 2025, month over month, rising by 2 points, according to the Consumer Confidence Index. Consumer confidence levels have stabilized since May but remain lower than last year’s, according to The Conference Board, which publishes the monthly index. July’s gain can be attributed to consumers over 35 years old and shared across all income groups, except the lowest income group earning below $15K. In addition, the consumer sentiment index from the University of Michigan dropped in August 2025 for the first time in four months. The index fell to 58.6 in preliminary August data from 61.7 in July. Year-ahead inflation expectation results were higher monthly, as consumers convey lingering anxiety about prices amid tariff impacts. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.

• The Q1 2025 report from the Motorcycle Industry Council revealed a sales decrease of 7.8% of new motorcycles and scooters among leading brands year over year, despite strong sales in certain other segments, according to Dealernews. Industry officials said some unusual weather, such as snow in Florida, may have also had an impact on sales. According to Anthony J. Kestler, VP, Sales and Marketing at Kawasaki Motors Corp., "There continues to be uncertainty in the market regarding forthcoming tariffs and their impact on powersports OEMs and customers. The US motorcycle market is down in the first four months of 2025, but Kawasaki has realized strong retail results in overall motorcycle sales." Another top motorcycle manufacturer, Yamaha, reported its motorcycle sales were on pace with the company’s forecast in the first quarter of 2025 while sales of competition and off-road bike sales remain higher than pre-COVID.
• The Retail Trade Industry is one of 11 industries reporting growth in July’s Services ISM Report on Business. Executives in the Retail Trade industry reported an increase in business activity, prices paid for materials and services, employment, and inventories, along with faster supply deliveries and a decrease in order backlogs in July. Additional industries reporting growth during the period were Transportation & Warehousing; Wholesale Trade; Finance & Insurance; Other Services; Management of Companies & Support Services; Public Administration; Real Estate, Rental & Leasing; Information; Utilities; and Health Care & Social Assistance. Seven industries reporting contraction during the period were Accommodation & Food Services; Construction; Mining; Educational Services; Agriculture, Forestry, Fishing & Hunting; Arts, Entertainment & Recreation; and Professional, Scientific & Technical Services. Overall, economic activity in the services sector grew in July for the second consecutive month, with the Services PMI registering 50.1%.