Canada hits large-capacity Harley-Davidson and Indian Motorcycle models with 50 per cent tariffs
Canada is introducing a 50 per cent tariff on US-built motorcycles with engines larger than 800cc, affecting Harley-Davidson and Indian.
American motorcycle manufacturers are facing a new 50 per cent tariff on motorcycles imported into Canada, with Harley-Davidson and Indian Motorcycle the biggest name brands to be affected.
The new tariff comes into force on September 8 and applies to motorcycles built in the United States with internal combustion engines larger than 800cc. It is part of a wider package of retaliatory tariffs introduced by the Canadian government in response to new US duties on Canadian goods.
For Harley-Davidson, the tariff covers a large proportion of its range. The company's Nightster, for example, uses a 975cc version of the Revolution Max engine, making it the smallest bike you can buy from them. Should the American brand introduce its much-talked-about Sprint to the region, it would be the only model in the range that falls below the tariff threshold.
Like Harley, Indian’s range is dominated by large-capacity V-twins. The smallest bike in the family is the 999cc Scout Sixty, which is also available as an A2 variant.
Harley sold 6,434 motorcycles in Canada during 2025, accounting for almost five per cent of its global retail sales. Sales have already fallen slightly in 2026, with 3,735 motorcycles sold during the first six months of the year compared with 3,912 during the same period in 2025.
Indian Motorcycle is also affected. The brand says all of its current motorcycles are assembled at its factory in Spirit Lake, Iowa, with its larger cruiser and touring models falling within the scope of Canada's new tariff.
The 50 per cent figure does not necessarily mean Canadian customers will see the price of affected motorcycles increase by exactly that amount. The tariff is charged on the customs value of the imported motorcycle, and manufacturers, distributors and dealers can choose how much of the additional cost is passed on. That said, in the current climate and with motorcycle dealerships worldwide coming under financial pressure, it’s unlikely they’ll be swallowing the shortfall themselves.
Motorcycles already in Canada before the tariff comes into force will also be unaffected, while US-built bikes already in transit when the new measures take effect are also exempt. New stock imported after September 8 will be subject to the 50 per cent duty.
There are some notable exceptions to the tariffs, with electric motorcycles being the most notable. That’s good news for LiveWire, Harley-Davidson’s electric subsidiary, although probably not enough to turn its fortunes around overnight.
The tariff is the latest development in the increasingly complicated trade relationship between the US and Canada, which has seen the Canadian PM, Mark Carney, and US President, Donald Trump, trading tariffs and trash talk.
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Simon (AKA Toad) has been working within the motorcycle industry for more than twelve years, and a member of the motorcyclist family since birth. Growing up around British-built single and twins, it was inevitable that a life on two wheels was on the cards, from a very early age!
