Moto Canada urges targeted approach to U.S. trade retaliation
Moto Canada is urging the Canadian government to avoid imposing retaliatory tariffs on U.S.-made motorcycles, ATVs, side-by-sides and powersports parts and accessories as trade tensions between Canada and the United States continue to escalate. The association’s position comes as Canada prepares to impose new countertariffs following the breakdown of the latest Canada-U.S. trade talks.
According to NPR, Canadian Finance Minister François-Philippe Champagne said Canada’s countermeasures will match U.S. tariffs “dollar for dollar, rate for rate,” with tariffs of 15%, 25% and 50% on a range of U.S. exports beginning Sept. 8.
Champagne said the countertariffs will target products including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. The move follows President Donald Trump’s decision to impose 50% tariffs on many Canadian goods after trade talks broke down Friday.
“When the United States asked too much and offered too little, we chose to stand up for Canadians,” Champagne said, according to NPR.
Champagne said the Canadian measures are intended primarily to protect industries affected by U.S. tariffs and help Canadian businesses compete with U.S. products.
“It’s all about fairness. It’s all about level playing field. It’s all about supporting Canadian workers and Canadian businesses,” according to Champagne.
While Moto Canada supports Canada’s efforts to defend its economic interests, the association is urging the government to keep powersports vehicles and related products out of any retaliatory tariff package.
Moto Canada represents manufacturers and distributors responsible for the majority of motorcycles, ATVs and side-by-sides sold in Canada. The industry supports a nationwide network of approximately 900 dealers and more than 88,000 jobs across every province and territory.
While about 140,000 powersports vehicles sold in Canada each year originate from 15 countries, Moto Canada said the integrated nature of the North American market means the current trade dispute could have a significant impact on Canadian powersports businesses. According to the association, approximately 50,000 to 60,000 motorcycles, ATVs and side-by-sides assembled in the United States are sold in Canada annually, representing roughly 40% of the Canadian market.
“Applying tariffs to powersport vehicles would primarily increase costs for Canadians and Canadian businesses while doing little to influence U.S. trade policy,” Moto Canada President and CEO Landon French said in an email.
The association pointed to previous Canadian tariffs on U.S.-origin motorcycles as evidence of the potential impact. Those tariffs increased costs, contributed to lower sales and placed additional pressure on Canadian dealers, according to Moto Canada.
The stakes may be even greater in the current market. The Canadian motorcycle industry generated approximately $1.1 billion in retail sales, including parts and accessories, in 2025, but experienced a significant decline from 2024.
Moto Canada also emphasized that powersports vehicles serve purposes beyond recreation, including transportation, farming, forestry, emergency services, tourism and other commercial applications. The association said retaliatory measures should be carefully targeted to avoid increasing costs for Canadian consumers and businesses.
“When the time is right, Canada and the United States need to return to the table and negotiate an agreement that keeps North American trade open and provides businesses and consumers on both sides of the border with greater certainty,” French said.
Moto Canada said it is continuing to engage with the Canadian government to outline the potential impact of trade measures on manufacturers, distributors, dealers and consumers. The association also encouraged Canadian dealers, riders and other industry members to contact their federal and provincial representatives and explain the role powersports businesses play in their communities.
With trade policy continuing to evolve, Moto Canada said it will provide updates as new measures and decisions emerge.
