Moto Canada: Tariffs pose significant risk to powersports industry
If implemented, the 25 percent tariff imposed (now paused for 30 days) on Canadian goods applied by the U.S. administration and counter-tariffs by Canada will significantly impact Canada’s motorcycle, ATV, and off-road vehicle market, according to Moto Canada.
The Canadian powersports association says it understands and supports a strong Canadian response. However, if enacted, counter-tariffs on motorcycles and parts will significantly impact the industry.
“We must do everything we can to support the Canadians who work in this industry,” says Landon French, president and CEO of Moto Canada. “Canada’s motorcycle and recreational vehicle industry plays a critical role in our economy, employing more than 88,000 people and generating more than $17.3 billion in annual economic activity.”
French adds, “Make no mistake, a tariff war on parts and motorcycles, in particular, would affect Canadian dealerships, hindering their ability to buy, sell, repair and service riders, leading to possible job losses.”
Impacts on dealerships, repair shops and manufacturing facilities would leave many of our friends north of the border without jobs and drive up costs for the 2.2 million Canadians who ride motorcycles, ATVs, SxSs and scooters. On the other hand, American factories could simply ship products to other countries.
Moto Canada says the industry depends on an integrated trade system with the United States, Mexico, and many other countries around the world. Tariffs disrupt this system, leaving Canadian businesses vulnerable and making it more difficult to compete. While U.S. manufacturers may find alternative markets, Canada will face a significant void, with dealerships facing a possible downturn and job losses.
“We want our community to know we are doing everything we can to make sure political leaders understand the impact of these tariffs. We encourage riders to speak up, be prepared, stay in touch with dealers on upcoming orders, and help everyone understand, from connected business leaders to elected officials, what’s at stake for our industry,” says French.
While President Trump has paused the tariffs for 30 days to come up with solutions, Moto Canada urges both governments to reconsider these measures and prioritize preserving jobs and economic stability on both sides of the border.
Moto Canada members represent over 90% of the powersports industry in Canada, generating $17.3 billion in economic activity and over 88,000 Canadian jobs.
