Powersports Equipment Manufacturers NAICS 336999

Aug 27, 2025 - Expanded Steel, Aluminum Levies In Effect

• According to the Motorcycle Industry Council (MIC), the US Department of Commerce has expanded Section 232 tariffs to cover more than 400 additional product categories that include steel or aluminum. The products face a 50% tariff on their metal content, as of August 18, 2025. Scott Schloegel, MIC Senior Vice President of Government Relations, noted that the powersports industry depends on high-quality steel and aluminum for frames, engines, components, and accessories. He said the expanded tariffs may impact manufacturers’ bottom line and may prevent them from selling particular vehicles in the US. The MIC had opposed the expanded tariffs and had requested that powersports industry products be excluded. 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 (MIC) 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 Bill Savino, MIC board member and director of Powersports National Sales at American Honda Motor Co., said he felt the industry is still healthy despite the dip in sales, noting, "While Honda has seen a small dip in two-wheel sales, especially among smaller bikes, our 50th Anniversary Gold Wing and other larger-displacement models are doing quite well, as are our four-wheel powersports models." Major manufacturer Yamaha reported its motorcycle sales were on pace with its forecast in the first quarter, while sales of competition and off-road bike sales remain higher than pre-COVID.
• The US powersports equipment manufacturers industry is projected to grow at a CAGR of 2.21% between 2025 and 2029, slower than the overall economy's anticipated growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The forecast noted that a tighter immigration policy could limit the expansion of the labor supply and job growth for durable goods manufacturing industries. A factor that may limit consumer spending is higher tariffs on consumer goods. On a positive note, lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. However, real income could suffer to an extent if average prices rise due to tariff implementation.