MIC warns of tariff impact amid strong U.S. Q2 growth and global trade tensions

The Motorcycle Industry Council (MIC) is warning that recently imposed and expanded U.S. tariffs could carry serious consequences for the powersports sector, even as the broader U.S. economy posted better-than-expected growth in the second quarter.

“The MIC government relations team remains actively engaged with legislators and policymakers on the issue of tariffs,” says Scott Schloegel, MIC’s senior vice president of government relations, in a July 31 member update. “We continue to monitor the effects that broad-based tariffs may have on the powersports industry and advocate for measures to mitigate these impacts.”

President Donald Trump’s executive order on reciprocal tariffs takes effect August 7 for most U.S. trading partners. According to the MIC, the new tariffs affect imports from powersports-relevant countries, including:

• Canada (35% tariff on non-USMCA goods, effective Aug. 1)
• India (25%)
• Japan (15%)
• European Union (15% base rate; 50% for steel/aluminum)
• Indonesia and Philippines (19%)

Despite these policy changes, the U.S. economy expanded at an annualized rate of 3.0% in Q2, according to the Commerce Department, exceeding the Dow Jones estimate of 2.3% and reversing a 0.5% contraction in Q1. The increase was driven in part by a 30.3% drop in imports, which may reflect companies front-loading shipments ahead of tariff deadlines.

While the top-line economic numbers appear strong, analysts and business leaders are increasingly concerned about the accumulating impact of tariffs. Companies including Apple, Stanley Black & Decker, and Procter & Gamble have reported hundreds of millions of dollars in tariff-related costs.

Retailers such as Walmart, Nike, and Best Buy have started raising prices. Meanwhile, consumer inflation remains above the Federal Reserve’s 2% target, with core PCE inflation at 2.5% in Q2, according to data from the Bureau of Labor Statistics.

Meanwhile, the European Union, one of America’s largest trading partners, announced on August 4 that it would delay retaliatory tariffs for six months while trade talks continue. The suspension follows a political agreement between President Trump and European Commission President Ursula von der Leyen.

Despite White House claims that tariffs are bringing in “hundreds of billions” of dollars, critics argue that American businesses and consumers are ultimately footing the bill. Some industry observers warn that if price increases persist, public support may erode, according to a Tax Foundation interview with Alex Durante.

For now, the MIC urges powersports businesses to stay alert, track changes in tariff schedules by country, and reach out with questions through its member services.