Motorcycle Dealers NAICS 441227

Feb 23, 2026 - Trump’s IEEPA Tariffs Overturned, Dealers Brace for New Import Duties

• The US Supreme Court’s ruling invalidating President Trump’s IEEPA-based tariffs marks a major development for motorcycle dealers, including Kawasaki, which had challenged the tariffs, according to Motorcycles News. In 2025, over $200 billion in tariffs were levied on imports, including motorcycles and related parts, raising costs for dealers and consumers. While the ruling clarifies that the president cannot impose tariffs under IEEPA, it does not provide immediate financial relief; refunds for tariffs already paid will depend on the outcomes of ongoing lawsuits in the US Court of International Trade. At the same time, the Trump administration has signaled plans to implement new tariffs under other laws, potentially affecting future imports. For US motorcycle dealers, this ruling provides legal clarity and a potential path to reimbursement, but uncertainty remains around pricing, import costs, and the timing of any relief as new tariff measures are explored.
• Consumer confidence and sentiment remain weak, signaling potential headwinds for US motorcycle dealers, as motorcycles are highly discretionary purchases. The Conference Board reported the Consumer Confidence Index fell 9.7 points in January to 84.5, the lowest since 2014, with the Expectations Index dropping 9.5 points to 65.1, well below the recession-warning threshold of 80. The Present Situation Index declined to 113.7, reflecting diminished perceptions of current business and labor market conditions. Consumers’ views of employment and income prospects also weakened, with fewer expecting job growth or higher income over the next six months. Preliminary February 2026 data from the University of Michigan show the Index of Consumer Sentiment rose modestly to 57.3, with Current Economic Conditions at 58.3 and the Index of Consumer Expectations at 56.6, all more than 11% below February 2025. With confidence and sentiment low, motorcycle dealers may face softer sales, longer inventory cycles, and increased reliance on promotions to stimulate demand.

• The US motorcycle dealers industry is projected to grow at a CAGR of 2.55% between 2025 and 2029, slower than the overall economy’s projected growth, according to an updated forecast from Inforum and the Interindustry Economic Research Fund, Inc. The retail and wholesale sectors are driven by consumer spending, along with expenditure by businesses and government. Per the forecast, retail spending could soften with the growth of spending on consumer services but it was noted that consumers have maintained strong spending on goods even as costs on some services have risen. High interest rates reduce demand by raising the costs of debt-financed spending. While interest rates have begun to decline, tariffs threaten to renew inflationary pressures and delay further rate cuts. Real disposable income is projected to increase 1.8% in 2025 and 1.6% in 2026, limited by a slow rise of employment and higher consumption prices.
• Polaris is selling its majority stake in Indian Motorcycle to private equity firm Carolwood LP, making Indian an independent company in 2026. While Polaris retains a minority interest, the move allows Indian to chart its own strategic path under new CEO Mike Kennedy, a former Harley-Davidson executive. For US motorcycle dealers, Indian's operations are expected to remain stable, with the majority of staff, facilities, and support networks unchanged following the transition. Dealers may see shifts in branding and product strategy, but no expected immediate disruption to sales or service. Polaris acquired the Indian Motorcycle brand in 2011.