6 • May 2026 • Powersports Business
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Tariff update: Revisions offer partial relief for motorcycle industry, uncertainty remains
A recent tariff revision by the Trump administration could reshape the outlook for the motorcycle industry, offering targeted relief for certain finished units while leaving broader cost pressures in place.
The updated Section 232 proclamation, which took effect April 6, removes some finished motorcycles from the derivative-product list tied to tariffs on steel, aluminum and copper. As a result, those motorcycles are no longer subject to Section 232 duties— a move welcomed by industry stakeholders after months of concern about potential expansion of the tariff structure.
Industry advocacy groups, including the Motorcycle Industry Council, Recreational Off-Highway Vehicle Association, and Specialty Vehicle Institute of America, had pushed back against broader inclusion proposals. Hundreds of letters were submitted through the MIC’ s channels, urging a more balanced approach to trade policy.
Despite the adjustment, the policy stops short of a full rollback, according to the MIC Ride Report. Tariffs remain in place on many core metal imports, and the revised structure introduces new calculation methods, including fullvalue assessments and material-content thresholds for downstream goods.
The updated Section 232 proclamation, which took effect April 6, removes some finished motorcycles from the derivative-product list tied to tariffs on steel, aluminum and copper.( File photo / CC)
“ This appears to create more favorable treatment for some finished motorcycles, but aftermarket and replacement parts are still likely to be captured at 25 %,” says Scott Schloegel, senior vice president of government relations for MIC, ROHVA and SVIA.
Schloegel added that the changes could also significantly impact certain imported four-wheel products, with effects varying based on classification, sourcing and intended use. He advised companies to consult trade counsel to better understand how the revised rules apply to their specific product lines.
The updated framework also leaves the door open for further changes. The U. S. Department of Commerce and the Office of the United States Trade Representative retain authority to add derivative products on a rolling basis and have been directed to report back within 90 days on the program’ s effectiveness.
For dealers and manufacturers, the takeaway is mixed. While the exclusion of certain finished motorcycles may ease pricing pressure in some segments, continued tariffs on materials and parts— particularly in the aftermarket— could still impact margins, inventory costs and consumer pricing.
MIC is encouraging companies to closely review supply chains and product classifications as the revised tariff structure takes hold. The associations say additional guidance or adjustments are possible in the coming months.
Be sure to check out the latest episode of Power Hour with MIC’ s Scott Schloegel as we discuss the latest on tariffs, the Capitol Hill Fly-In, and the effects of PFAS legislation.
CPD hires new marketing and social media coordinator
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Central Powersports Distribution( CPD) has appointed Erik Hoagenson as its new marketing and social media coordinator, expanding the company’ s digital marketing and dealer engagement efforts.
Based in Marshall, Texas, CPD distributes several boutique European motorcycle brands in the U. S. powersports market, including Rieju, Fantic, AJP, Electric Motion and YCF. The company also distributes aftermarket brands such as X-Grip, Rtech, Hebo and WRP.
MARKETING FOCUS In his new role, Hoagenson will lead CPD’ s digital marketing initiatives, coordinate
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In his new role, Erik Hoagenson will lead CPD’ s digital marketing initiatives, coordinate dealer-focused promotional programs, and help strengthen the company’ s online presence across the U. S. powersports market.( Photo: CPD)
dealer-focused promotional programs, and help strengthen the company’ s online presence across the U. S. powersports market.
His responsibilities will include coordinating marketing campaigns with dealers, developing social media strategy, supporting collaborative promotions with CPD’ s OEM partners, and expanding digital communication with the company’ s dealer network.
Hoagenson brings more than 20 years of experience in design, marketing and brand development, with a background that blends creative design with operational marketing.
“ I’ m excited to join CPD and contribute to a growing network of dealers and riders who are passionate about these unique European brands,” Hoagenson says.“ There’ s tremendous opportunity to support dealers with strong marketing tools and help bring more attention to these machines in the U. S. market.”
DEALER NETWORK GROWTH CPD said the hire reflects its ongoing focus on strengthening dealer support and expanding awareness of niche European off-road and trials brands in the United States.
The distributor works with a nationwide network of dealers and riders, providing product distribution, dealer support programs and marketing initiatives aimed at the off-road, trials and specialty powersports segments.
Virginia Harley-Davidson consolidation comes into focus following Bayside sale
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The previously reported consolidation of Harley- Davidson dealerships in Virginia’ s Hampton Roads region is now clearer following the completed sale of Bayside Harley- Davidson in Portsmouth.
As we reported in February, Hampton Roads Harley- Davidson and Southside Harley- Davidson announced plans to combine operations at the Portsmouth location of Bayside Harley- Davidson, signaling a broader strategic shift in the market.
That move coincides with the March 6 transaction in which Bayside Harley- Davidson was sold by longtime owner Maurice Slaughter to Michael Veracka of MOD Enterprises. The deal was brokered by Performance Brokerage Services, which served as the exclusive sell- side advisor.
The acquisition is part of a larger effort to streamline operations in the Hampton Roads market, bringing multiple dealerships under a unified ownership structure. Operations for the combined stores are centered at the Portsmouth location, where Bayside will be rebranded as Ironclad Harley- Davidson.
The consolidation aligns with earlier messaging from the dealerships, which emphasized continuity for customers and staff.
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According to a joint announcement in February, the transition brings together more than a century of Harley- Davidson experience, with employees from all locations offered positions within the new organization.
For Veracka and MOD Enterprises— widely recognized as the largest Harley- Davidson dealership group in the U. S.— the move reinforces a multi- store strategy focused on scale and operational efficiency. The group also operates Riverside Harley- Davidson, known as the world’ s top- volume Harley- Davidson dealership by new unit sales. Slaughter, who spent more than 25 years
The dealership earned multiple national accolades, including Top10 and Top100 rankings from Dealernews, as well as recognition for its service department and dealership theme.
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in the motorcycle business after entering from the automotive sector, built Bayside Harley- Davidson into one of the industry’ s most recognized stores. The dealership earned multiple national accolades, including Top− 10 and Top− 100 rankings from Dealernews, as well as recognition for its service department and dealership theme.
The transaction also highlights the continued role of buy- sell activity in reshaping the powersports retail landscape. Performance Brokerage Services noted it has advised on nearly 450 dealership transactions over the past five years, underscoring the pace of consolidation across the industry.
The Hampton Roads realignment reflects broader trends impacting the Harley- Davidson network and powersports retail overall. Market pressures, succession planning, and the pursuit of operational efficiencies are increasingly driving multi- store ownership models and regional consolidation strategies.
Michael Veracka, Owner of MOD Enterprises, shares,“ It was a great pleasure to work with George Chaconas of Performance Brokerage Services on the buy / sell of Bayside Harley- Davidson, Virginia’ s # 1 Harley- Davidson Dealer! They did an outstanding job coordinating efforts to facilitate the buy /
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For new owner Michael Veracka and MOD Enterprises— widely recognized as the largest Harley- Davidson dealership group in the U. S.— the move reinforces a multi-store strategy focused on scale and operational efficiency.( Photo: Performance Brokerage Services)
sell of Bayside Harley- Davidson while simultaneously helping Harley- Davidson Motor Company optimize the local dealer network, consolidating Southside Harley- Davidson and Hampton Roads Harley- Davidson in the local market. Without the support of Performance Brokerage Services, this deal would not have happened.”
The recently renamed dealership, Ironclad Harley- Davidson, will remain at its current location.
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