8 • May 2025 • Powersports Business

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,

The impact of tariffs first imposed by U. S. President Donald Trump and Canadian counter-tariffs, has hit motorcycle sales the hardest, down nearly 22 percent over 2024, says Moto Canada’ s CEO Landon French.( Photo: Moto Canada / Facebook).

president and CEO of Moto Canada. Since the U. S. election in N ovember, 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, reducin g the level of product available to Canadian retailers and shops while prices increase in Canada, according to the association.

Powersports industry leaders gave high praise to a group of bipartisan lawmakers who reintroduced legislation to fully fund the Recreational Trails Program.

The Motorcycle Industry Council, the Recreational Off-Highway Vehicle Association, and the Specialty Vehicle Institute of America all applauded S. 811, a bill that would ensure that RTP funding reflects the amount of fuel taxes that off-highway vehicle enthusiasts pay at the pump.

“ The Recreational Trails Program is one of the most impactful federal initiatives supporting off-highway recreation,” says Christy LaCurelle, president and CEO of the MIC, ROHVA, and SVIA.

Senators Amy Klobuchar( D-MN) and James Risch( R-Idaho)— the bill’ s sponsors— notes in a press release that S. 811“ will ensure that federal funds collected for this program are maximized to support more trail projects in the future. The bill signals strong support for bringing the Recreational Trail Program funding in line with the revenue collected from the federal gas tax already paid by off-road recreational vehicle users without impacting funding for other federal transportation programs.”

The RTP is a federal program that provides funding to states for the development and maintenance of recreational trails. It follows the“ user-pay, user-benefit” model of the Highway Trust Fund, using revenue from federal fuel taxes collected on non-highway recreation to support trails for motorized and non-motorized use.

Though OHV users contribute an estimated $ 281 million annually in fuel taxes, the program is currently funded at approximately $ 84 million per year. The new legislation seeks to close that gap and better align RTP funding with user contributions.

“ The user-pay, user-benefit model means motorcyclists and OHV riders will see their contributions better utilized to maintain and expand trail access,” says LaCurelle.

The MIC, ROHVA, and SVIA have been strong supporters of the fair distribution of RTP funds and have long championed efforts to secure full RTP funding, working closely with policymakers and outdoor recreation advocates to advance this initiative.

Since its creation in 1991, the RTP has funded thousands of projects, including trail maintenance, new trail construction, trailhead development, accessibility improvements, and outdoor education initiatives, and the program supports a wide range of powersports activities.

A new federal bill that supports off-highway recreation will ensure full funding will directly benefit powersports and outdoor enthusiasts.( File photo)