8 • November 2025 • Powersports Business
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How tariffs are affecting the motorcycle market
Amid uncertainties around the recently imposed tariffs, Cycle Trader published an article weighing in on the potential impact they will have on the motorcycle industry, including the effects they will bring to foreign and domestic OEMs, dealers, and consumers.
OEM AND AFTERMARKET PRICE HIKES
This year imported motorcycles were hit with a 25 % tariff, a substantial increase from the previous 2.5 %. The price increase is getting passed on to dealers and, eventually, consumers. BMW, KTM, Triumph, Honda, Yamaha, and Royal Enfield prices increased throughout numerous models. This has caused new unit sales to slump a bit, and consumers are increasingly looking to the used market as an alternative. Cycle Trader reports that this has driven up the cost of some used models by as much as 10 %
to 20 % this year. Models 25 years and older benefit from a lower rate of 2.5 %, sparking interest in the import of vintage models.
The higher tariff rate not only applies to machines but also to parts, including engines, transmissions, and electrical components. Zero Motorcycles, for example, initially locked in reservation prices but had to raise the MSRP of new models due to increased costs.
This tariff rate also hits much of the aftermarket, affecting the prices of replacement parts and service. Tariffs on regular replacement items like brakes and gaskets have driven up the cost of maintenance, while P & A prices are also impacted.
DOMESTIC MACHINES ALSO EFFECTED
Even U. S.-built vehicles aren’ t immune, as many rely on imported steel and aluminum for production. According to MIC, motorcycles with foreign-produced steel components are now subject to steep new 50 % tariff. For example, a $ 10,000 motorcycle could jump to $ 13,000 –$ 14,000 at retail. Moreover, retaliatory tariffs from the foreign market on the U. S. range from 6 % to 56 %, potentially decreasing the interest and export of American-made parts and machines.
Harley-Davidson says the import of parts and foreign-made components is projected to cost the company as much as $ 175 million in 2025 alone. Domestic production in the U. S. may reduce the amount spent on tariffs but will involve significant investments and higher costs, resulting in even smaller profit margins.
DEALER FINANCIAL SNAPSHOT
New tariffs have hurt new unit sales, but provided a boost to used and vintage model motorcycles.( Photo: Rawpixel. com / CC)
CONSUMER CONSEQUENCES The article concludes that a higher percentage of motorcycle enthusiasts in the U. S. ride for leisure rather than for everyday transportation, decreasing the possibility of large purchases due to economic uncertainty. Higher costs, fewer motorcycle sales, and reduced profits could ultimately lead to the loss of corporate, manufacturing, and retail jobs, which will further contribute to reduced consumer confidence and spending.
NORTHWEST
0.6 % Parts Department 6.1 % Service Department 13.5 % Major Units 9.6 % Overall
WEST-2.6 % Parts Department 4.5 % Service Department-0.1 % Major Units 0.5 % Overall
UNITED STATES
1.4 % Parts Department 8.6 % Service Department 5.7 % Major Units 5.7 % Overall
MIDWEST-0.3 % Parts Department 6.4 % Service Department 2.4 % Major Units
2.9 % Overall
SOUTH
5.4 % Parts Department 12.1 % Service Department 8 % Major Units 8.5 % Overall
NORTHEAST
2.6 % Parts Department 11.3 % Service Department 8.1 % Major Units 8 % Overall
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SEPTEMBER 2025 VS. SEPTEMBER 2024
In September, major unit sales were up 5.7 % across the U. S. compared to the same month last year, according to composite data from more than 1,700 U. S. dealers that use the Lightspeed DMS. The Northwest saw doubledigit growth in major unit sales this month, up 13.5 %, while the South and Northeast were up 8 %. Sales in the Midwest were up 2.4 %, while the West remained fl at. Service revenue was up a combined 8.6 %, led by the South, 12.1 %, and the Northeast, 11.3 %. Both the Midwest
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and the Northwest had gains hovering around 6 %, while the West increased its service revenue by 4.5 %. Parts sales were slightly up for August, with a 1.4 % increase. The South was up 5.4 %, followed by the Northeast, up 2.6 %. The Midwest and Northwest regions remained mostly unchanged, while the West experienced a loss of 2.6 %. For combined revenue, every region saw increases compared to September 2024, most signifi cantly the Northwest, 9.6 %, the South, 8.5 %, and the Northeast, 8 %. The Midwest had a combined gain of 2.9 %, while the West was up 0.5 %. |
PARTS SALES Parts revenue was up at 987 dealerships and down at 907
SERVICE SALES Service revenue was up at 1,133 dealerships and down at 718
MAJOR UNIT SALES Major unit revenue was up at 585 dealerships and down at 545
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FOR MORE ON THE SAME STORE SALES DATA
For more information on this report and other industry data, contact: lightspeeddms. com
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