Tariff battle hitting motorcycle sales hard in Canada
Canada’s powersports industry association, Moto Canada, reports a significant drop in first-quarter retail sales data for 15 of the top powersport brands across the industry for the first three months of 2025 compared to the same quarter last year, according to a statement released April 7.
The impact of the ongoing trade war between the United States and Canada, driven by tariffs first imposed by U.S. President Donald Trump and Canadian counter-tariffs, has hit motorcycles the hardest, down nearly 22 percent over 2024.
“To be clear: this decline is almost exclusively due to Canadian consumers feeling nervous about their financial situation due to tariffs,” comments Landon French, president and CEO of Moto Canada. “The year began on a positive note across all categories in January, but took a major downward turn in February, with the trend continuing through March. The uncertainty has led to significantly reduced spending on motorcycles.”
Since the U.S. election in November, Moto Canada has been working with members and other industry partners to call for an end to tariffs. Currently, American-made motorcycles, motorcycle tires and related parts and accessories are all subject to Canadian counter-tariffs, with the possibility of ATVs and side-by-sides being added to the list. Should other recreational vehicles be tariffed by Canada, we predict it would have devastating consequences.
Moto Canada understands and supports Canada’s need to respond to unjust American tariffs; unfortunately, counter-tariffs in this industry disproportionally impact the motorcycle sector. U.S. factories can simply sell to different markets, reducing the level of product available to Canadian retailers and shops while prices increase in Canada, according to the association.
“We’re here in Washington this week, meeting with Canadian Embassy officials, members of Congress, and Senators to reinforce the fact that American trade policy will cost jobs in the United States while unnecessarily hurting their Canadian neighbors. The damage inflicted by tariffs and counter-tariffs is already underway, and it needs to be halted before it causes irreparable harm.”
– Landon French, president and CEO of Moto Canada
Approximately 32 percent (45,000) of all motorcycles, scooters, all-terrain vehicles, and side-by-sides sold in Canada each year are manufactured in the U.S.. In contrast, 4,000 motorcycles are manufactured in Canada and sold in the U.S.
“The next few months will be critical for powersport manufacturers and dealers in Canada,” notes French. “Ensuring dealers can keep their skilled employees working will be the key to emerging from this situation when things improve. It’s important that governments recognize the contribution the more than 900 dealers and 88,000 jobs make in Canada, particularly in rural Canada.”
“While much attention is rightfully given to the auto industry at this time, we are working daily to ensure the powersport industry receives the attention it deserves,” French concludes.
