American Motorcyclist Association CEO Testifies Against Proposed Motorcycle Tariff


A proposed 100 percent tariff on European motorcycles
would harm U.S. consumers by pricing affected models beyond the
reach of American families, American Motorcyclist Association
President and CEO Rob Dingman told a federal trade committee
today.
Dingman said motorcycles should be removed from the list of
products included in the proposed tariff.
"Many of the European-produced motorcycles in the affected
categories are available at reasonable prices that allow for entire
families to enjoy countless hours together outdoors, strengthening
the family unit," Dingman said during a public hearing of the
Office of the U.S. Trade Representative's Section 301 Committee. "A
tariff that threatens to significantly raise the retail cost of
these motorcycles or curtail their supply, holds the potential to
cause irreversible damage to outdoor recreation and the families
that participate in it."
The Office of the U.S. Trade Representative proposed the tariff on
51cc to 500cc
motorcycles imported from Europe as part of its ongoing battle
with the European Union over U.S. beef raised using hormones. The
EU will not accept the beef, so the Trade Representative is seeking
leverage in negotiations.
The tariff would affect
motorcycles with engines displacing 51cc to 500cc from Aprilia,
Beta, BMW, Ducati, Fantic, Gas Gas, Husqvarna, KTM,
Montesa, Piaggio, Scorpa, Sherco, TM and Vespa.
There is no direct connection between motorcycles and the EU's ban
on the importing of U.S. beef products treated with hormones. The
lack of an agricultural tie between the two products runs counter
to sound trade policy, Dingman told the committee.
"American motorcyclists are unnecessarily caught in the crossfire
of this completely unrelated trade dispute," Dingman said. "Since
my organization represents motorcycle-riding consumers, I can
objectively and without vested commercial interest, assure you that
this action will do more to harm individual Americans than it will
to leverage the European Union."
Motorcyclists sent more than 10,300 emails to Congress on this
issue, posted more than 9,400 comments to Regulations.gov, and sent
nearly 5,300 emails to President Donald Trump. Of the comments
submitted via Regulations.gov, 82 percent came from
motorcyclists.
European makers of 51cc-399cc motorcycles used for racing provide
nearly half the units available to U.S. consumers, and nearly a
quarter of the market in the 400-500cc class. There are no
significant U.S.-made options for consumers in those market
segments.
In the on-road motorcycle segment, 100 percent of the models 300cc
and smaller are imported to the United States from abroad.
The Office of the U.S. Trade Representative tried this same tactic
in 1998 and 2008, but the efforts were thwarted when the AMA, the
Motorcycle Industry Council and bike manufacturers and retailers
rallied motorcyclists against the plan. At that time, the U.S.
Trade Representative instead raised the tariff on a variety of
European food products.
Others testifying against the tariff today included Carroll
Gittere, president of Powersports Data Solutions; Iain McPhie and
Ritchie Thomas of Squire Patton Boggs; John Hinz, president of KTM
North America Inc. and Husqvarna Motorcycles North America Inc.;
Mario di Maria, president and CEO of Piaggio Group Americas Inc.;
Rick Alcon, owner of R&S Powersports Group; Tim Cotter, vice
president of MX Sports; and Tim Buche, president and CEO of the
Motorcycle Industry Council.