Powersports Business February 2025 | Page 11

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OPINION

Powersports Business • February 2025 • 11
FROM THE EDITOR INSTA TIPS

Tariff takes

Is your dealership capitalizing on the top-of-mind marketing ease that Instagram offers ? Did you come up with an ideal way to showcase your customers in an effort to help spread the word about your shop and its employees ? If so , let us know . Powersports Business will highlight Instagram posts from a variety of dealerships in upcoming editions of the magazine .
Dealerships featured all follow the Powersports Business Instagram at @ powersportsbusiness . All posts featured will be photo or video in nature , with content from Instagram Stories not considered for this piece .
In December , I got a call from Landon French , president and CEO of Moto Canada , to see what we were doing to cover the proposed tariffs on Mexico and Canada from then President-elect Donald Trump . My initial thought was that we had
BRENDAN BAKER to wait and see if it was a real threat or just a bargaining lever being pulled to get a better deal with our top allies and neighbors .
Fast forward to February 1 , and President Trump ’ s now enacted tariffs on imports from Canada , Mexico , and China could have significant inflationary effects , according to the MIC and Moto Canada . “ You and I pay it ,” says Scott Schloegel , MIC ’ s senior vice president of government relations . “ We pay it through the goods that we purchase , and your companies pay it on anything that they bring in .”
The tariff ’ s make good on Trump ’ s campaign threats , despite warnings from economists that a new trade war with our top trade partners would erode U . S . and global growth , while raising prices for consumers and companies .
The Wall Street Journal , typically more aligned with the GOP , labeled Trump ’ s latest move as the “ Dumbest Trade War in History .”
Economist Paul Ashworth told the Canadian Mortgage Professional : “ The resulting surge in U . S . inflation from these tariffs and other future measures is going to come even faster and be larger than we initially expected . Under those circumstances , the window for the Fed to resume cutting interest rates at any point over the next 12 to 18 months just slammed shut .”
French says the motorcycle and recreational vehicle industry plays a critical role in Canada ’ s economy , employing more than 88,000 people and generating more than $ 17.3 billion in annual economic activity .
“ Make no mistake ,” he adds . “ 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 hard-working Canadians without jobs and drive up costs for the 2.2 million Canadians who ride motorcycles , ATVs , Side by Sides and scooters . American factories on the other hand , could simply ship products to other countries .
French says the powersports industry depends on an integrated trade system with the United States , Mexico and many other countries around the world . Tariffs disrupt this system , he adds , leaving Canadian businesses vulnerable and making it more difficult to compete .
While U . S . manufacturers may find alternative markets , French say 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 .”
French is asking Canadian powersports enthusiasts to speak up , and stay in touch with dealers on upcoming orders and help everyone understand , from connected business leaders to elected officials ,
what ’ s at stake for the industry . Meanwhile , Moto Canada asks that both governments reconsider these measures and prioritize the preservation of jobs and economic stability on both sides of the border .
Schloegel has underscored the importance of in-person participation with Congress , particularly through testifying during legislative and tariff hearings . “ The reason we were successful on some of this … was because [ MIC members ] came to testify ,” he says , referencing past efforts where members helped secure tariff exclusions on critical products such as motorcycle helmets . Schloegel stresses that personal involvement is far less burdensome than bearing the cost of unfavorable legislation or tariffs .
Schloegel says that collaborating with the MIC is essential for addressing legislative challenges and advancing advocacy efforts . Key information required from across the industry includes Harmonized Tariff Schedule codes , which help MIC staff identify products impacted by proposed tariffs and develop strong cases for exclusions . The GRO has made several calls to action among members and throughout the industry , asking that companies provide them with information about the specific products affected by tariffs and the HTS codes for those products .
As of press time , Mexican President Claudia Sheinbaum announced a pause for a month on imposed tariffs , upon agreeing to send 10,000 troops to defend the U . S . border . She told Reuters , “ Problems are not resolved by imposing tariffs , but by talking and engaging in dialogue .”
The U . S . imports more than $ 900 billion of products from Canada and Mexico , and a 25 % tariff is huge given that goods have crossed North American borders duty-free for many years .
Economists expect that car prices will rise , noting to Reuters that U . S . auto manufacturing is very interlinked with Mexico and Canada , with parts going back and forth across borders many times . Analysts say they ’ re not really American cars but North American cars .
Canadian Prime Minister Justin Trudeau called for citizens to refrain from buying American-made products and will also retaliate with tariffs against the U . S . He says President Trump is risking the longstanding relationship between the allied nations , and warns the tariffs are a mistake , noting that less than 1 % of fentanyl and less than 1 % of illegal crossings into the United States come from Canada .
As for the powersports industry in the U . S .: we don ’ t need unnecessary obstacles placed in our way while we are still recovering from the high interest rates and inflation of the past three years . Stay tuned for our upcoming Power Hour podcast with Moto Canada ’ s Landon French .
Got an Instagram tip that works at your dealership or one with which you do business ? Feel like raising the collective industry tide ? Let us know at bbaker @ epgacceleration . com .
ADVENTURE HARLEY-DAVIDSON @ adventureharley
Followers 3,014 Sharing your dealership ’ s Employee of the Month is a great way to recognize and celebrate your team ’ s hard work . Highlighting their achievements boosts employee morale and fosters a culture of appreciation within your dealership . For customers , it adds a human touch to your business , showing the faces behind the service they receive . Adventure Harley- Davidson recently recognized one of their employees with a caption , “ Congratulations to our Employee of the Month , Ann ! Ann consistently goes above and beyond as our Parts Team Lead to ensure our customers and team members have everything they need . Her dedication , expertise , and positive attitude keep our department running smoothly and make her an invaluable part of the team .”
PRO ITALIA MOTORCYCLES @ proitalia Followers 11.5k Pro Italia Motorcycles offered to store the motorcycles of those who were affected by the California wildfires . The dealership shared , “ Valued customers , with the showroom cautiously reopening this morning , we are here to extend our support and resources to those who are affected by the recent fires … please don ’ t hesitate to reach out and we will store your motorcycle at no cost . Limited availability , but we will do our best to accommodate as many as we can . If you ’ re nearby and need a moment to rest , grab a bottle of water , or use the restroom , our doors are open to you .” This generous offer reflects the dealership ’ s core values and dedication to its customers .
MOUNTAIN SIDE POWERSPORTS @ mountainsidepowersports Followers 1,388 Sharing why a customer chose to make a purchase in a customer appreciation post can highlight the unique appeal of your products , showing prospective customers how you meet individual needs . These authentic testimonials can inspire others to consider your dealership for their own needs . Mountain Side Powersports recently posted , “ Congratulations to Jeff on the purchase of his new Expedition SE 900 turbo R ! Jeff had seen a bunch of these and decided he needed one for himself . We got him all set up with the winch setup and a bunch of other goodies ! Enjoy the sled Jeff and thanks for coming to see us at MSP !”