AFTER yesterday’s news that American-made motorcycles of over 500cc would not be hit with further tariffs, the European Association of Motorcycle Manufacturers (ACEM) has called for an end to damaging tit-for-tat tariffs.
While the news is good for firms like Indian and Harley-Davidson, it’s not to say that a return to high import tariffs on motorcycles won’t return. The ruling yesterday was to temporarily suspend the doubling of tariffs for six months.
That news isn’t good enough for ACEM, and the body that represents motorcycle manufacturers in the EU is calling for a more permanent resolution to the problem.
The EU’s Rebalancing Measures currently remain in place at 25%. This means US motorcycles still bear a 31% tariff, something that has a negative effect on bilateral trade, the outcome of which is then passed on to European motorcycle dealers and their customers. The suspension of the additional 25% is a temporary measure, which ACEM fears could still threaten significant harm to the European motorcycle sector.
A statement on the European Commission website does though confirm that talks will now begin in an effort to de-escalate the ongoing trade war.
It reads:
‘To ensure the most constructive environment for these joint efforts, they [EU and US] agreed to avoid changes on these issues that negatively affect bilateral trade. They committed to engaging in these discussions expeditiously to find solutions before the end of the year that will demonstrate how the U.S. and EU can address excess capacity, ensure the long-term viability of our steel and aluminum industries, and strengthen our democratic alliance.’
