I bought a brand new 2016 BMW R1200 GS for $17,500 I bought a brand new 2022 BMW R1250 GS for $24,500 - 40% increase over 2016 Last fall, I priced a new 2024 BMW R1300 GS for $27,500 - 57% increase over 2016 All bikes were equipped the same. From 2016 to 2024, my wages increased 30%, so I bought an Aprilia Tuareg 660. In eight years, I may need to buy a used bicycle. The motorcycle industry broke a long time ago.
@@Brad-RB it isn’t the same bike anymore, same platform but the bike has improved significantly over older gens. Cars have gotten more expensive but that’s because there was a time a second mirror was an option on cars😂 Things advance and that’s probably the biggest reason why they get more expensive. That and inflation
A fantastic video highlighting the impact of tariffs on just one small market, motorcycles. The same thing will happen with cars and hundreds of other items. History tells us tariff wars don't work and they won't this time either.
Seemed to work out really well for vehicle industries in literally every country that does it. Europeans drive European, Japanese drive Japanese, and the US #1 selling car is the Ford F150. Specifically due to tariffs and subsidies.
Except it seems like you don’t listen to the news Tariffs are only there for those that do not wanna work with us get it. Already 50 countries have decided to drop all tariffs against the United States so in return, we will drop them as well. That’s how this works.
@@dorybseibes9723 the establishment media is leaving that part out, watching people to take to the streets, and posting very clickable articles on the fiasco. ez money.
@@logangodofcandy Why does the world not buy American cars? Because they are shyte. If America wants the world to buy American cars, build ones that the world wants to buy.
Before it was COVID and the war in Ukraine.... any excuse to rip people off... On the other hand my wage has stayed the same since 2017.... and living keeps rising... I'm one step away from jumping head first of a 10 story building...
@@RocketMan_Moto And we are still paying that. All companies conspiring to reclaim the money "saved" by the, largely middle classes not buying new cars, holidays, eating out etc. That was why we have the ridiculous inflation situation. Necessary to begin with but now they are just taking the P>ss.
Sorry. We didn't look up what a tariff was before we started doing 'em and by the time someone told us, everything was already on fire, so we just went home. Also, if you're not into bikes, just replace the word "motorcycle" with literally anything else you can buy. You like guitars? Good news, they're all more now. You're into sewing, camping, video games? Those cost more too. Any of your hobbies can be made great again with the power of tariffs.
@@joek81981 what has really increased prices both foreign and and domestic here in the US and hurt foreign companies is the unfettered money printing over the last four years. That devalued the dollar. It made all goods more expensive,And the money was given away. It was also given to millions of illegals invading our country for high end hotels, free food and gift cards. Meanwhile Americans that were hit by natural disasters were given $700 one time and told FEMA was out of money. Illegals were given $1000 a month gift cards by FEMA .
I saw a great video on here somewhere, by a small team that just like to start respectful, open and honest debates with strangers on the street. They were in New York, discussing the possibility of tariffs before they were raised. One guy said it won't affect people as 'the other countries just pay'. There was then some discussion around why 'other countries just paying' actually means it ONLY people that pay. This is why I wrote my original comment about common sense and depth of thought - I see and deal with people like this chap (and no disrespect to him, he was friendly, happy to debate and after an initial spat where he almost let his frustrations get the beter of him he did remain open and realised there was more to it than he first saw) every day. People just assume, for instance, 'the council look after that' or 'someone else will report that' or 'they're all as bad as each other'. They like over generalised sweeping statements that sum things up and they don't want to waste time thinking things through. They don't mind complaining but want as few bodies to complain about as possible. They'll live with hardship to an extent as long as they can blame it on others. I wish people were just a bit more interested in the 'boring' thing in life. Just if they spent two minutes here and there thinking about stuff a bit deeper than usual. Reading past the headlines, asking what's in it for these people and for me and what can I do to make my world a tiny bit better. Humans are great when they stop distracting themselves and being angry where they don't need to be.
@@guysmiley8473 American Mexicana has been ripping off other countries for well over a century, thankfully it has now been thrown out of many places. Yankland also subsidises its farmers and many industries plus it has always had tariffs and other trade barriers in place. Many countries bit the bulley back in the early 1980s and pushed free trafe, they also diversified their markets. About bloody yime Yanks felt some of the pain they have inflicted on so many others for so long.
when reagan put tariffs on Japanese bikes over 750ccs we saw innovations in sub-1000cc bikes. Yamaha Fazer, GS-700, Honda Interceptor. A lot of people I've seen point to this as a reason why the tariffs might be good - I'm not so confident. These were tariffs directed at one subset of the market, that forced brands to innovate in other sections. this on the other hand is a blanket tariff on all foreign bikes, no matter their size. we're in for what I expect will be another motorcycle dark age.
Those tariffs protected Harley, who was based on large displacement bikes. It's good for consumers and the Japanese that they adapted to it, but the tariffs were good for HD.
@@janeg4706 Especially because some companies will specifically try to bankrupt them. The most made in America brand (if not actual business). And associated with Republicans as well. So we might see "okay, have 20% right back. Oh, and 40% on motorcycles over 750cc" Or even HD singled out by name.
Prices have been rising at alarming levels long before tariffs were implemented. For decades, there has been a global race to the bottom, driven by the pursuit of cheap labor. The trade imbalances eroded the middle class. The larger-than-life egos that cannot admit that de-industrialization was a big mistake create money out of thin air to "paper over" the distortions these policies have created. The result has been massive inflation. Another significant issue with global trade is that indirect costs are not factored into the price of the product. For example, Triumph motorcycles are shipped from East Asia to Europe via the Suez Canal. Who is primarily keeping the Suez Canal open for shipping to pass through? The US Navy. So, the US taxpayer is expected to subsidize the shipping of Triumph motorcycles. This is so much more complex than tariffs.
It doesn´t hurt to look into the numbers. Our world in data is a nice repository showing, that free trade had one major effect: the world is better off now! The anecdotes that the US are paying indirectly don´t accumulate to a significant effect. The trade imbalances are just a description of what is, and don´t allow to derive any statement from them about the state a country is in. If I buy bananas from you and you don´t want my meat, as you might be vegetarian, does this make you a bad person who is hurting me? If you again want to invest in the US, which is not a transaction like bananas, but equity, does this hurt me? It´s import as well, as you acquire a plant (haha, irony) or something, as you don´t think that maybe your money is safe in your home country. Are you hurting me with this? NO! You bring me my own currency - Dollars!
@ yet wealth disparity has never been greater. There is no such thing as free trade. Fair trade must be constantly negotiated. Your examples are too simplistic. Like a meme. That simplistic thinking is how lifting the third world out of poverty at the expense of the industrialized middle class was deemed to be a good idea. A zero sum game. We could have lifted up the third world and kept the middle classes. Tariffs are a symptom of a greater sickness. A return to sound money and fiscal responsibility and 90% of these problems go away.
As someone who loves in America and loves Japanese bike brands and Triumph's bikes, I have talked with dealers about the increase in bike costs, and it's not great. It is going to hurt the industry, as well as create an even higher barrier to entry for a lot of people who may be interested in starting.
@@eduardoolivares9653 That would be nice indeed... but I am afraid that they aren't going to cut cost out of these. On the contrary, they are more probably to cut cost from things like build quality. Why? Because "build quality" is not easily advertised or even perceived by less experienced riders. The same goes for chassis components. On the other hand, all these useless gadgets can be advertised as "features" and better serve their marketing. They make a bigger impression on the average rider. I do hope I am wrong though...
Awesome video! Good points for sure. I remember at university several lectures in macro economics discussed the harmful effects of tariffs. Hopefully a truce can be negotiated where calmer minds prevail. No one needs a trade war where no one wins in the end. Elon Musk said yesterday zero tariffs should exist between the US and the EU. I agree. Hopefully this train of thought will continue. Best!
Even if US and EU don't tariff each other, if they individually tariff other countries differently, they can still undercut each other. Regardless, they can both import goods manufactured in countries that the other does have tariffed to overcome those tariffs. In the end, if every country doesn't protect their labor, it will simply be exported to a 3rd world country, leaving people without jobs, while the companies exporting labor make more than ever.
Well your excellent biking videos are usually quite easy for me to understand. But this video required some thought and a good understanding in economics which I have no clue. It was certainly enlightening and a refreshing change to seat heights, fuel economy, ergonomics, tyre choice etc. Good job it was released on Sunday evening, and not a Monday morning which I think would have frazzled my brain. Thank you RM. SW France.
If people just stopped and thought things through it would be a lot harder for us all to end up in messes like these because the electorate would not allow politicians that have these hair-brained schemes. The basic concept of adding a cost increases the price to consumers (as well as encouraging thefts) isn't hard to grasp at all. Looking at many far right politicians it's not at all hard to see they lack intelligence either. If people actually thought, rather than believing headlines and lies... hard to not feel let down by big swathes of society who say 'it's too difficult', 'I never understood that' yet vote.
Lotta cope in the comments about tariffs. Y’all don’t have to defend this regardless of your political ideologies. The tariffs could kill the motorcycle industry and that is NOT okay.
Excellent video RM. I don't necessarily subscribe to the Harley -> potato analogy, but I do think the US president is the colour of a swede (turnip)! 😂
Royal Enfields sales are not very big in the USA but globally are 1 million bikes. Other more expensive machines that have a big stake in the US market will be hit far harder. Harleys already in trouble are going to suffer a catastrophic decline due to component import tarrifs.
The competing force will be that people have less money so supply/demand kicks in. Motorcycles now need seat belts so that we can strap in for the crazy ride that's about to occur.
Who would have less money? Tariffs mean that we buy fewer foreign goods, so the money stays in our own countries. Businesses rely on sales. Sales rely on people having money to buy. When people need more money, they negotiate for higher wages or quit for a higher paying job. That's supply and demand. You people never understand labor markets.
Yeah, but when people have less money interest rates, also drop so then money is a lot cheaper tomorrow that’s a supply economics and when money is very cheap to borrow That Spurs economic growth so then people will have more money.
Maybe, I guess there's too many factors to consider, alternatively when times are uncertain people tighten their belts. Probably all comes down to the labor market, if we see job losses, money will be super tight, you can't borrow money if you don't have a job. If there's plenty of jobs, maybe you're right.
Over the years I've bought various motorcycle apparel from the U.S and every time it was stopped at customs then I had to pay tax on it, but no other country has this happened... so I think Trump has a point...
Well, since Brexit anything bought from the EU, with a value of over £135, will have duty applied. Many of the shops based in the EU that I purchase from stopped selling to the UK for a few months while they figured it out. Almost all (knowing we, as customers, like things simple) have altered pricing to incorporate import costs... but we still pay them, they have'nt vanished. Oddly many EU shops are still better value than UK but that just shows what a rip off the UK is.
Well done that Man, gritty truths will out! I'm surrounded in my club by machines going back to the 40's, the owners trundle around this Glorious Isle blissfully unaware what you are 'on-about', one has just come back from the blacksmith with a repaired girder fork and that bike will see out anybody watching this vlog! Oh, and they will not watch your unearthly production because trust in, 'them new fangled electronic boxes' hasn't arrived yet! Do laugh but also think deeply, fun on two wheels is what matters to the individual, but I'm gutted for the supply chain!
Good explanation; what was missing is that tariffs or inversely government subsidies for internal production already existed prior to the new US tariffs. What we need is an elimination world wide of internal production subsidies as well as all tariffs.
A classic example; Airbus and Boeing. Both are supported by government in different ways, and the cost per seat on a new aircraft is around $500,000 per seat on a new bird. Just nuts.
@@tomg6284You say supported by government but remember some people will think that's OK, doesn't affect me. Tell it like it is and say 'supported by taxpayers'. Governments don't have money without taxpayers or debtors (and they couldn't get loans secured if they had no tax income). Working people always foot the bill.
Sadly, the aging of riders was killing the motorcycle industry before donnylon '25 started. I was planning to head back into Canada this summer. Let's hope that remains physically possible.
@@Candywarhol that is true, but I think main reason is the cost of motorcycle these days, with every modern advantages of modern manufacturing, prices just keep rising, R&D is very limited, just look at advancements from model to model, minimal at best, I praise Chinese bikes precisely for showing everyone what a ripoff motorcycle manufacturers are.... to get back to your question, before buying first bike person has to have, proper vehicle, housing solved, family fed, after all that solved, you have 40 years at best...
@@Cartmanvb Chinese manufacturers haven't "shown everyone what a ripoff Motorcycle manufacturers are". They have produced cheaper bikes because their workers have low wages, and no rights. When you are happy to work for 10% of your current income, and have no rights as a citizen, get back to us. Chinese items will only be cheap as long as they have competition, and their workers are content to work for low wages. Once they are the pre-eminent supplier guess what? Yes, the wages they pay will have to rise, and the prices will go up. Be careful what you wish for...
In Australia, we haven't bought into the reciprocal tariff process. Motorcycles here are a discretionary spend, often for senior riders. The trade war is likely to produce inflation as secondary markets in Asia are impacted by the trade war and perhaps buy less Australian. Cost of living pressures will potentially reduce discretionary spending here. So, in the short term, we may get some bargains as dealers offload inventory followed by further reductions in sales and dealer networks as demand falls. This trend was already under way here.
Every country has their own industry. Tariffs should absolutely be out in place to protect their own industries, or all jobs would be in China and India. Produce local goods, sell local, buy local.
@@Free_Ranger_CT110 That's what the Australian Government hoped for, however Australia is now subject to a 10% tariff for exports to the US. The following is from the Department of Foreign Affairs and Trade: Most Australian-originating goods will be subject to tariffs of 10 per cent on import into the United States. These tariffs take effect from 12:01AM on 5 April 2025 EDT (3.01pm Saturday, 5 April AEST). On 2 April EDT (3 April AEST), President Trump announced his Administration's 'Reciprocal Tariffs' policy.
Amazingly well-said. Lesson in economics, in simple words. Anyway... we must not forget that what may happen to motorcycle industry, will possibly happen to most modern industries, too. Computers and electric devices, household devices, building materials, clothing, musical instruments, etc. How many of these products will the consumer be able to neglect and put in the "luxury" category? Just wondering...
Going to watch! Just started it. As an American who has only bought 1 new motorcycle, I haven't been able to afford a new motorcycle since 2002. The insurance for a Hayabusa in the states is $495 a month. The motorcycles they've been building the last 20 years are an abomination 1.) Too low of gearing for America's 80mph freeways. Modern motorcycles are geared INCORRECTLY, and should be legally required to have an overdrive gear. 2.) Too ugly, too much electronics, and impossible to repair at home.
Tariffs were supposed to be quota based to stop market swamping but certain people in power don't seem to have the ability to understand this....Hence the problem we have now which will have a domino effect
Let's say we happily price our locally grown potatoes at $13 instead of $10, an unwise and rather cynical move that would be quickly called out by our customers, and they would respond by just not returning to buy at this price, causing us to lose more money. It would be sensible then to keep fine-tuning the price of our potatoes to earn our customers' good will back... or perhaps avoid the PR disaster altogether by not even raising the price at all, knowing that more people buying local potatoes will encourage more local potato farmers to crop up, so encouraging more competitive prices amongst local farmers.
In the short-term inflation may well be the result, but in theory excess profits should attract increased competition and temper said inflation. Manufacturers from abroad may also set up local manufacturing to serve their foreign customers' needs. We may see that, but I think we may also see countries come to the table to negotiate freer trade deals to knock down their own barriers to trade with the US. Many countries have not been dealing fairly, that's pretty obvious, with China being the most glaring example.
suply and demand, who said China should import as much from the US as the US imports from China? You guys are trying to set entire new rules on the free market ffs.
People who depend of motorcycles as their daily commuter mostly purchase scooters or 125cc motorcycles. Pretty cheap, cheap maintenance, low consumption and little to no tax.
What about all the tariffs other countries placed on the US that have been in place for a long long time? Who put those in place and why was it ok for them to do so?
Thanks for an interesting and thought provoking discussion, and conversation starter. Hard to know which way this will all go, and I suspect even the perpetrator of this nonsense doesn't know where it will end up. A few American contributors below seem to still want to believe it's fine for the US to do all this - perhaps they should quietly give it some time before deciding it's all going to be fair and wonderful. I for one don't think it will be. Those of us watching this 'passing parade' from the relative safety of Australia can't see the sense in it. It looks rather like the new president is applying tariffs as a means of political control, but time will tell. But it is all being instigated by an administration that apparently WANTS to cause uncertainty, willfully and intentionally, which businesses and markets don't like. With 'unpredictability' as a trademark, we can't hope to predict how it will all end up. But I think we are seeing 'simplistic economics' being applied to the entire trading world at the moment, and upheaval is never good for stability, economically or strategically. I might just go for a ride! My only dilemma being which bike? Ducati or Transalp? Bitumen or dirt roads? Thanks for entering this fraught area, with your usual calm and thoughtful commentary. Nice to share a considered and logical discussion on such a worrying topic. Well done.
Hear me out - I really don’t think this will trickle all the way down to commuter bikes and scooters. That segment is incredibly price-sensitive, and there's very little room for manufacturers to raise prices without taking a major hit in sales. You're absolutely right when it comes to big bikes - weekend toys, cruisers, and sportbikes are far more vulnerable to this kind of pricing pressure. Why? Because those models are more likely to include components affected by U.S. tariffs, and manufacturers have more leeway to inflate prices without immediately killing demand. But when it comes to utilitarian motorcycles - the kind people rely on daily - it’s a completely different game. These bikes, much like mid-size pickups like the HiLux, are the workhorses that help mobilize half the planet. Manufacturers know this, and they’ll move heaven and earth to keep production costs down. If a few parts are hit by tariffs or other disruptions, they’ll find workarounds. The stakes are just too high to let affordability slip in this part of the market.
If the US matches tariffs to the same level as the EU does for US-Imports, why then doesn't the EU lower tariffs accordingly? I mean the wast majority was ignoring the probihitive import tariffs China has but suddenly goes crazy because the people in the TV said orange man bad while production is getting outsourced to countries like China for dacades.
@@David-uk3nv life is great for the bully when he's sure his victim won't fight back... But as soon as he gets punched in the face he cries to everyone who will listen about how he is the victim.
EU tariffs on US goods currently average around 3%, and US tariffs on EU goods were previously at a similar level. Trump has now raised the EU goods tariff to 20%. There's nothing for the EU to lower, they were broadly on par with the US tariffs. The EU's next move is likely to increase US good tariffs to the same 20% mark.
The EU has no trade agreement with the US so WTO tariffs apply. Why does the EU doesn't have a trade agreement with the US when they have agreements with almost anybody else you ask? The US diesn''t only want low or no tariffs, they want the EU to abolish all safety and environmental standards and adopt US standards instead. Some US manufacturers produce to EU standards, Ford has a Mustang for the EU, GM has the Corvette for the EU, Teslas Model S and X come from the US as well as the higher spec Model 3. US grass fed beef is quite popular. Just not the hormone injected variant.
Trump lied about numbers, EU and others numbers (tables he showed) ARE NOT tariffs that are imposed on USA by other countries. It's a blatant lie. Those are results of an insane redneck math formula which takes trade difference as the base. For EU he claimed 39%, the average tariff in reality is 1-2%, haha. Go, MAGA. On Trumps incompetent dream team is an "economist" Peter Navarro, he for years had coo-coo ideas, but Trump likes them, so have fun. If you will have next elections, maybe try to not vote for crazy con mans.
A more immediate concern is now motorcycle theft. As we saw during lockdowns - sales volume and prices or certain things (bicycles, dogs) rocketed leading. This led to increased thefts of these items (yes, even dogs) for resale. If motorcycle prices rocket then resale prices will be more bouyant encouraging thefts. This means the tariffs will not just increase prices but crime and insurance costs too. Lock you bikes up well folks - if you don't we all see increased insurance premiums but also you might not be able to afford a decent replacement.
A level playing field is what we want, don’t make it sound as though tariffs are new. Tariffs won’t hurt the motorcycle industry, they already shot themselves in the foot. 🇺🇸
I understand that Brits like big bikes with a lot of electronics and I'm sorry for the higher prices. Medium sized traditional bikes are quite popular in the EU and the prices a likely to be less affected. I'm sure everyone soon will prefer the bikes with less electronics.
@@fuglbird soon!...Many of us in the UK have ALWAYS preferred them, sadly too many of our importers seem to prefer the higher profit margins of the plastic gin palace toy shop
Let's not forget that manufacturers can choose to make other countries pay for the US tariffs : for example, if tarifs increase the price of your goods in the USA by 50 % and you know that the USA population cannot afford the 50 % price increase, you could increase prices worldwide by 15% instead +50% in USA to help selling more in the USA
If there is enough demand in the US for motorcycles and they can be built cheaper in the US then foreign manufacturers will start building them in America. I live in the Philippines and the HD Nightster is right at $14K while the same bike in the states is listed around $9K. Over 70 countries as of today are in negotians to do reciprocal tariffs.
So basically, if everyone drops their tarrifs to zero on american goods and the reciprocal policy is followed, then everyone wins. Reciprocal tarrifs are just that, Reciprocal. If you are fair, we are fair. the motorcycle industry and nany others could flourish with zero tarrifs and zero trade barriers world wide.
Let’s look at the 40% tariff imposed on the Falkland Islands by the US government. The Falklands buy nothing from the US. All goods come from South America or the UK. The Falklands export fish to the USA. That’s all. The tariff has been imposed on the trade deficit. This means the difference between exports and imports. So the price you pay in the states for fish from the South Atlantic (Sea Bass, Squid) will go up 40% for the consumer. This will lead to less demand so people in the fishing industry in the South Atlantic will lose their jobs. How utterly ridiculous is that?
@@petittrainguernsey3297so if the fish go up in price and the fish don't get purchased it's America's fault? Sounds like a you problem, America will find food it's willing to pay for.
The idea is to raise prices so much that companies will move manufacture over here, but i don't hear ducati, suzuki or yamaha or anybody else moving manufacturing over here, do you?
I love the tariffs, and it’s about time. People seem to forget what NAFTA did to US manufacturing. If tariffs are so horrible, then why do other countries tariff US goods coming into their country? Because it protects local manufacturing. Not difficult to understand. If bikes doubled in cost over night, I would not care. Just wait until factories suddenly decide that making bikes HERE is a really good idea! Jobs. Money. Middle class. How long did it take to move our jobs and factories over seas? What would you give to have them back? If this isn’t important to you, then I don’t know what to say to you.
@9:40. Not sure how US imposing a tariff will automatically make all motorcycles prices rise in the rest of the world. Seems like demand from the US will drop significantly but won't the rest of the world just keep going?
Motorcycles aren't even targeted by the tariffs lol The EU's retaliatory tariffs do target motorcycles though! So it sucks to be Harley Davidson, but as an American, they suck to begin with imo.
The issue with tariffs is that people forget the basics of international trade. When Americans swap their dollars for yuan (or whatever) for 30 years, it causes the dollar to depreciate against foreign currencies. This makes imports expensive. Therefore, the gains of cheap labor/resources are quickly eroded by currency fluctuation. The current global trade regime that allows Wall Street to profit and DC to leverage foreign governments is predicated on complex currency manipulations that are not free. In the case of the US, the hollowing of the working class has led to public debt and interest expense. Effectively, retirees and poor people are paying for the trade deficit because their programs are being crowded out by interest. Tariffs shift the cost of the trade deficit back to consumers and hopefully to the countries and companies who are racketeering off of our fake perpetual trade deficit. The US is in an existential crisis. We reached this point by concern-trolling and gaslighting ourselves about the importance of keeping prices down, even if it means we must pay $1T in interest on our $36T public debt. I’m not willing to bankrupt the US to pay $1500 less for a KTM.
Many other countries are already paying tariffs. Tariffs are not what is breaking the motorcycle industry. The cost of EURO compliance is, as it makes it much more expensive for manufacturers to build and design a compliant motorcycle.
American here, we enjoyed the best economic recovery post COVID out of most developed nations. We also have benefited from global trade, and having the global currency be the dollar making us the wealthiest nation on earth. It is my opinion that due to escalating wealth inequality here globalization and other countries trade deficit's are being used to scapegoat growing dissatisfaction with the erosion of the middle class. The best part of all of this is the plan is for the tariffs to be used to fund a tax cut that will primarily slash the taxes of the top 1% earners. Just my take, apologies to the rest of the world.
Well, 50 countries including the EU & Japan just caved to the tariffs that have been stealing from the USA. I wonder if they’ll ever sell the Tracer 7 in the USA?
Looking through the tariffs, *It seems* like motorcycles aren't subject to the tariffs(I'm not a lawyer, and it looks like something that just fell threw the cracks.). Just like you said tho, I don't see dealers not hiking up the price on them and blaming the tariffs anyway.
Prices have been rising considerably over the last 5 years as have automobiles. In the end motorcycles are not a necessity in most western economies. Many will pay the inflated prices, but many will look towards the used market.
Pricing is a complex issue Anglophone countries were the first to massively develop consumer finance that wasn’t done with the consumer at heart, rather the financial services sector. Now we have all had a taste of punching way above our weight with the likes of PCP products used for cars and bikes etc, this method of “purchase” has exploded with trail commission benefits for referring dealers etc, but hugely proinflationary for bike prices. In an interrelated way, put simply if people can find a way to finance a £/€20,000 motorbike then industry will be encouraged to increase prices inline with consumer price tolerance
The US says, OK we’re going to mirror what you are already doing to us and suddenly that’s not Ok? Why? The end result should be NO tariffs. If your product is quality then it should sell well, right?
It won’t last. Japan will go zero tariffs very quickly if not already. But bikes are a luxury so I don’t see many sales anyway till the economy fixes. How ever long it takes.
I dont think the tariffs are a good idea but your example of inflation is not quite right. If the original potato seller was selling at $10 just because the outside competion was taffied does not mean he could raise his prices unless no one else in the country was selling potatos. The market price in the country had already settled at $10 for potatos and any increase would slow sales.
Tariffs make it more expensive to import. So, the supply at $10 is reduced to only what we have before tariffs. Extra potatoes that need to be imported would be a higher price. Now, the local potato economy can either expand their production to increase their wealth, or they can raise the average price of potatoes. Basically, US potatoes are $10, terrified potatoes are $12, and US potatoes go to $11 and production increases, because that's a 10% increase in income. Eventually, the scramble to increase US yield due to the extra value of potatoes will meet demand, and prices will go back down, mostly. In the end, all the money is paid to Americans, Americans buy all the potatoes, prices slightly rise and we have higher wages.
Well put. Prices are going to climb now. They see the carrot and will run with it. As with all tarriffs the consumer always pays them. Til they say enough is enough and stop buying. The economy was already fragile and this will bear this out quickly. Food over motorcycles. Meds the same.
potato farmer increases prices by 30%, almost all of that profit margin. He also has his income tax reduced because of revenue from the tariffs. In Canada we ate 15% tax on all goods and services in 1990. it's going to be fine.
Let tell you what to imagine..... Forcing people to buy new motorcycles and not to not buy fine 2nd hand motorcycles because of emissions. This at the time when disposable income is at the lowest and the new Chinese motorcycles, latest Euro emissions compliant, invade the EU market at 2nd hand motorcycle prices.... Prices will fall because people cannot afford those prices....
I have ALWAYS tried my very best to buy British, to support small businesses and keep the profit in the UK..but always found prices undercut by foreign pricing..I can't keep British business afloat on my own and our government wouldn't help them either way.. don't even mention the unions.
Some of that must be greed though. I can buy kit made by an American company cheaper from Germany (including the duty) than I can in the UK. UK stores will sometimes have sales and can match these prices... so t's totally doable, but they choose to charge more. Not sure your beef with unions. If workers can be paid less and treated worse by bosses prices won't be any lower just the divide between wealthy bosses and the masses will be even higher and the risk of more people being pushed into poverty will be greater.
Somehow I doubt Ducati, BMW, or Moto Guzzi will move production to the U.S. I wouldn’t want that anyway, a motorcycle is not an appliance to me. I think the world’s motorcycle manufacturers should at any cost eliminate American made parts and if that means utilizing less tech, good!
I suspect what you refer to is already happening; that European manufacturers will already be seeking non-tariffed alternative sources for those items affected. But this is a huge part of the Trump misunderstanding - Ducati and the like will never move production to a nation with such high labour costs. As we can all see - manufacturers are increasingly moving to countries with lower costs of production, not higher. And if this current process reduced the emphasis on electronics on our bikes? Yes, I agree that would be a step in the right direction. Too much 'electronic bollocks' on new bikes now.
Industrial manufacturers need trust in governments. And that has been destroyed for many years, and not just by tariff policy. I think Americans will only wake up when they experience firsthand that their jobs and their savings are gone, and they can no longer finance their daily lives. Good luck.
Talking about ripple effects: what Asian manufacturers won't now sell in the US is likely to be offered to the rest of the World at a cheaper price, putting pressure on say the EU to also put tariffs on those to protect European manufacturers. On the""optimistic" side, that and the fact that there is a decrease in motorbikes' sales across the board makes for a good moment to buy one in the EU, I've noticed significant discounts on 2024 unsold stocks, and even on 2025 new ones. Now if you own or have your heart set on a Harley/Indian and you don't speak "American" yeah, you're f....ed for the foreseeable future.
@@fs5866 I looked around a HD slaesroom last week (the dealer is now a Piaggio dealer too and my Guzzi needed a service). I saw HDs for £30k! Blew my mind.
The truth is that the tariffs you mention will actually be insignificant. Motorcycle prices are going down. Look at the Honda Hornet and the GB350, any Royal Enfield or Chinese bike. American and EU input into the world of motorcycles is minimal. The winners are all feom Asia.
The prices will, and already is, rising everywhere no matter if that country is directly impacted. Plus the retaliatory tariffs and the full crash is yet to happen. But no, you wont be able to snipe tariff-free countries and think youre gonna get a deal.
The motorcycle industry, and market in the US, UK and Europe is might amount to a million toys per year combined. It is dwarfed by the motorcycle industry and market around the world, with the countries such as Thailand, India and others producing millions of machines which are embraced as practical transport by folks in SE Asia, Africa and South America.... and a few in Europe who have seen the light.
But if I keep my potatoes at 10 euro a KG, and not bump my price up to "cash in", then I get a bigger local market share ;-) If I own a van maker I would be doing all I can to get my parts built local also. Cant be done..... it once was and cant often means you do not want to.
Every one looks at the tree and forgets the forest, US has a 35 trillion dollar unplayable debt, we are all screwed for a long time we just didn’t know it yet, it has to burst some how, independence of the root that takes.
Look up how the percentages were crudely put together via a heavily decontextualized consideration of trade imbalances, and you may consider using the word “nonsensical” in place of either.
@@johnm2871"then, in 1913, for reasons--------- unknown to mankind, they introduced the income tax. So citizens, rather than foreign countries, would fund our government." -Trump, about Tariffs, on April 2. He still thinks foreign countries pay his tariffs. So as much of a "ah ha" moment you think you just had, remember that he may say tariffs are paid by foreign countries, they arent. So why do you think he says that when its not true? Is it malicious, to decieve the American people that he isn't just adding a new tax while lowering income tax for the rich? Or is it accidentally, that he keeps accidentally saying they pay it when he meant his people pay it. That's not a good look, a president who despite continued correction still slips and says the opposite of what he means? That sounds worse than sleepy joe was before leaving office... Whats your thoughts on why Trump has continued to say an untrue rhetoric for 3 months? Could this be a common theme for him? Maybe? Why has he slashed DEI but doesn't fill his own cabinet with "merit" but rather "loyalty"? Idk, things to think of while drinking your American whiskey no other countries are buying anymore.
I agree with all your comments about the effect of tariffs on the motorcycle industry but the people I feel sorry for are those in mid-working life or approaching the end of their working lives who have built up savings for their retirement, Those people will loos much of their retirement funds and the flow-on effect lasts for the rest of their lives. This is all being done by some egotistical madman millionaire who lives in a fantasy world not caring a fig about the type of people he claims to represent and who can't issue a few sentences without turning them into a lie. Why is this happening? How can this happen? And do all those American idiots who voted for him realise what they have done? Aaaagggghhhhhhhhh!!!!
We have a cult of people in the country that think Trump can do no wrong, and unfortunately those people have a right to vote. They were conned, but aren't smart enough to realize it, or honest enough to admit it.
There is just no way to ruin the motorcycle market. The motorcycle market in America is "You buy a Harley." That's the solution. When I meet people, they always have a Harley or they are in the process of getting a Harley. And, when discussing cost, the cost is never an issue. And in fact, people enjoy spending a fortune on a Harley, because of the status symbol. One man I knew had a $45,000 new Harley. Another man had a used Harley that was $12,000. And they didn't complain at all about the price.
@starseeddeluxe huh? What about off road, motocross, regular street bikes, side by sides, etc? These are huge in the US, but Harley offers nothing in these segments.
I fear that Even the cheaper bikes will be affected by this. A CRF300L has a very small profit margin, so these bikes may not even be imported because nobody will be willing to absorb the hefty tariffs, and a 20% price hike will kill demand.
Economies of scale in manufacturing plants are an important factor. Many individual motorcycle models have inadequate sales volume to support the cost of building manufacturing plants in multiple countries. In many cases a single plant worldwide is the only potentially cost effective method. Proliferation of tariffs between countries could make the existence of such models economically impractical. I am merely making an economic observation, I am not making a political value judgment about policy choices.
Lucky me to get my bike in the summer of last year, otherwise it wouldn't be possible. ( Even if my Aprilia's Italian brand my model is manufactured in India )
Inflation is an increase in money supply. If US money supply increases, because US aren't sending money overseas for cheap goods, and instead sell more American goods, American wages will go up, due to demands for higher wages across the US market.
tell me about it :P i'm from europe ... and i have an indian ftr ... i buyed oem oil kit change from usa a few days ago ... ebay refunded me cause it got turned back in the us lol.
A very interesting and comprehensive video on the state of things. I am astonished how one twit in the White House is bringing about changes that are affecting so many countries and will ulitimately cost the everyday person. I guess that's a discussion for another day but the ramifications of tarrifs is not good and history has shown that.
So which country has motorcycle tariffs? The E.U? No. Japan, NO. China yeah. So really it's about tariffs on Chinese bikes? Because E.U. and Japan no tariffs, which actually makes motorcycles cheaper.
Your 10$ potato example is flawed. You say that the 10$ vendor will raise his prices because he is now competing against someone who can go no lower than 16$ due to tariffs. But that fails to take into account that there are other local potato vendors and those who do not raise their prices will have a competitive advantage against those who do.
The weird thing (other one) is that even a 100% tariff would not make a local produced alternative reach profitability. I was watching today an american dude that imports it's bottles from China because producing the same bottles in US would cost him 800% more. The labels alone compare at 0.25cents each from china VS 2usd in america. it is bonkers... Good to see you mention the local producers hicking their prices to "capture" the new profit margin now available. It is something nobody speaks of, and everyone is betting that "only imported goods" will see their prices rise. So, American Bilionares will even get more money. Also the "apply the tariffs and the factories will come" argument is mute: 1- Americans are enjoying excellent unemployment numbers, and nobody wants to operate machines anymore; 2- nobody will invest on building a factory, knowing that this might be a temporary thing either by Trump renegotiating the tariffs with each market, or the next president. Its an artificial price hike that can be removed with a signature. Nobody bets millions against this. Even funnier part is... China brands are the ones that enjoy more independence from american produced items. SO their prices will not suffer that much, and they will beneffit from all this.
Like gravity the law of supply and demand will set prices. As an American and a biker I’ve always been mystified by the tariffs imposed on HD by Countries around the world. Now they are squealing like stuck pigs when reciprocal tariffs are imposed on them. It’s about time America shuts the free ATM down.
Harley has let their customers down … but it appears that their CEO (the German DEI architect) is leaving or was most likely persuaded to leave. Things can only get better from here… ?
So as sad as it makes me... the US bike market is fairly irrelevant from a global sales perspective (other than cruisers). So while the bikes I want will get a lot more expensive (and I certainly won't be buying a H-D or Indian... I'm old but I'm not THAT old)... I don't think it'll hurt the global industry that much.
I think it depends on the type of bikes. The low displacement bikes are barely sold here. But the expensive higher margin bikes do sell here. So it's a smaller number but they make a lot more money per bike
you called the covid pandemic "different" than tariffs - because you claimed it was natural and not "man made". I guess you didn't hear about it, but not only was covid man made, but the reactions to it were man made - which artificially drove up inflation. From that perspective, covid and tariffs are the same. just because one was duped into thinking the man made reactions to covid were somehow good, doesn't make those inflationary reactions any more noble than tariffs.
Yes, tariffs have existed for a long time - but that doesn’t mean they make sense today. In a global economy, protectionism often backfires and hurts all sides involved. Saying that a 10% tariff only causes a 2-3% price increase is a massive oversimplification. It ignores the ripple effects - rising input costs, weakened competition, and ultimately, higher prices for consumers. Trump often throws around made-up numbers to justify his actions. He claimed the EU charges 39% tariffs on US goods - but that’s just not true. For example, the EU imposes 10% tariffs on cars, while the US applies 2.5%. That’s a difference, sure - but it’s nowhere near 39%, and most goods are taxed at 0-5% or even less. He also misrepresents VAT (value-added tax) as if it were a tariff. In reality, VAT applies to all products sold within the EU, including domestic ones - it’s not a trade barrier, it’s a general consumption tax. As for "bringing back jobs" - tariffs don’t fix structural issues like lack of infrastructure, skilled labor, or supply chains. Companies move production where it makes business sense, not based on slogans. Audi and VW already produce in the US - the idea that they’d suddenly move everything due to tariffs is exaggerated. Protectionism might win political points short-term, but it hurts economies in the long run - including the one it’s supposed to protect. I hate politics and gov around the world :D
Meh. I have a new gen 3 hayabusa, I'm trying to get a Z900 as fast as I can before the markup hits again then I'm done for with buying bikes until things get back to normal. These 2 should be enough for at least 3 decades.
Simply after WW2 the U.S. industry was largely untouched while most of European and Asian were decimated. The U.S. help rebuild those countries industries with the Marshall Plan and not applying tariffs on goods from those countries sold to the U.S. Those countries decimated applied tariffs on U.S. goods. Additionally the U.S. guaranteed European security since WW2 allowing EU countries to concentrate on rebuilding their economies. The promise from the Europea countries made after WW2 that free trade with no tariffs once they got back on their feet. Not only did the European not drop tariffs on U.S. goods. Ut increased them while still not making good on their commitments to paying their fair share to Nato. President Trump wants free trade with no tariffs but if Europe and China continues the taariffs then the U.S. will implement reciprocal tariffs. What the EU charges the U.S. the U.S. will charge the EU and others. The tariffs on U.S. has long been unfair and unheeded. So calling the 2nd guy after being hit as being responsible for a fight after he returns the blow is ridiculous.
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I bought a brand new 2016 BMW R1200 GS for $17,500
I bought a brand new 2022 BMW R1250 GS for $24,500 - 40% increase over 2016
Last fall, I priced a new 2024 BMW R1300 GS for $27,500 - 57% increase over 2016
All bikes were equipped the same.
From 2016 to 2024, my wages increased 30%, so I bought an Aprilia Tuareg 660. In eight years, I may need to buy a used bicycle.
The motorcycle industry broke a long time ago.
Who said accountants cannot be funny? :-)
It's been going downhill for a while, I agree
BMW broke. No other brand hicked it's prices like BMW... just because THEY SELL nevertheless.
@@Brad-RB it isn’t the same bike anymore, same platform but the bike has improved significantly over older gens. Cars have gotten more expensive but that’s because there was a time a second mirror was an option on cars😂
Things advance and that’s probably the biggest reason why they get more expensive. That and inflation
@Brad-RB now is going to be even more broke.
@4:10 maybe we just need to stop putting "radar assisted cruise control" on motorcycles.
Thanks for your input :)
A fantastic video highlighting the impact of tariffs on just one small market, motorcycles. The same thing will happen with cars and hundreds of other items. History tells us tariff wars don't work and they won't this time either.
Seemed to work out really well for vehicle industries in literally every country that does it. Europeans drive European, Japanese drive Japanese, and the US #1 selling car is the Ford F150. Specifically due to tariffs and subsidies.
Except it seems like you don’t listen to the news Tariffs are only there for those that do not wanna work with us get it. Already 50 countries have decided to drop all tariffs against the United States so in return, we will drop them as well. That’s how this works.
@@dorybseibes9723 the establishment media is leaving that part out, watching people to take to the streets, and posting very clickable articles on the fiasco. ez money.
Thanks for your input :)
@@logangodofcandy Why does the world not buy American cars? Because they are shyte. If America wants the world to buy American cars, build ones that the world wants to buy.
Manufacturers are looking for any excuse to raise prices; they will add 1000 euros and say, "Sorry, it's down to tariffs"
Yep
Yes, a bit like the COVID tax a few years ago
@@frankstocker5475 Currently they are also designing lower spec budget bikes so they can sell more at a lower price 👍
Before it was COVID and the war in Ukraine.... any excuse to rip people off... On the other hand my wage has stayed the same since 2017.... and living keeps rising... I'm one step away from jumping head first of a 10 story building...
@@RocketMan_Moto And we are still paying that. All companies conspiring to reclaim the money "saved" by the, largely middle classes not buying new cars, holidays, eating out etc. That was why we have the ridiculous inflation situation. Necessary to begin with but now they are just taking the P>ss.
Sorry. We didn't look up what a tariff was before we started doing 'em and by the time someone told us, everything was already on fire, so we just went home. Also, if you're not into bikes, just replace the word "motorcycle" with literally anything else you can buy. You like guitars? Good news, they're all more now. You're into sewing, camping, video games? Those cost more too. Any of your hobbies can be made great again with the power of tariffs.
Thanks for your input :)
@@joek81981 what has really increased prices both foreign and and domestic here in the US and hurt foreign companies is the unfettered money printing over the last four years. That devalued the dollar. It made all goods more expensive,And the money was given away. It was also given to millions of illegals invading our country for high end hotels, free food and gift cards. Meanwhile Americans that were hit by natural disasters were given $700 one time and told FEMA was out of money. Illegals were given $1000 a month gift cards by FEMA .
I saw a great video on here somewhere, by a small team that just like to start respectful, open and honest debates with strangers on the street. They were in New York, discussing the possibility of tariffs before they were raised. One guy said it won't affect people as 'the other countries just pay'. There was then some discussion around why 'other countries just paying' actually means it ONLY people that pay.
This is why I wrote my original comment about common sense and depth of thought - I see and deal with people like this chap (and no disrespect to him, he was friendly, happy to debate and after an initial spat where he almost let his frustrations get the beter of him he did remain open and realised there was more to it than he first saw) every day. People just assume, for instance, 'the council look after that' or 'someone else will report that' or 'they're all as bad as each other'. They like over generalised sweeping statements that sum things up and they don't want to waste time thinking things through. They don't mind complaining but want as few bodies to complain about as possible. They'll live with hardship to an extent as long as they can blame it on others.
I wish people were just a bit more interested in the 'boring' thing in life. Just if they spent two minutes here and there thinking about stuff a bit deeper than usual. Reading past the headlines, asking what's in it for these people and for me and what can I do to make my world a tiny bit better.
Humans are great when they stop distracting themselves and being angry where they don't need to be.
What goes around comes around. Trump is tired of the US getting hosed.
@@guysmiley8473 American Mexicana has been ripping off other countries for well over a century, thankfully it has now been thrown out of many places. Yankland also subsidises its farmers and many industries plus it has always had tariffs and other trade barriers in place.
Many countries bit the bulley back in the early 1980s and pushed free trafe, they also diversified their markets.
About bloody yime Yanks felt some of the pain they have inflicted on so many others for so long.
when reagan put tariffs on Japanese bikes over 750ccs we saw innovations in sub-1000cc bikes. Yamaha Fazer, GS-700, Honda Interceptor. A lot of people I've seen point to this as a reason why the tariffs might be good - I'm not so confident. These were tariffs directed at one subset of the market, that forced brands to innovate in other sections. this on the other hand is a blanket tariff on all foreign bikes, no matter their size. we're in for what I expect will be another motorcycle dark age.
The trump tariffs @25+% don't even target motorcycles, or motorcycle helmets. What are you on about?
Those tariffs protected Harley, who was based on large displacement bikes. It's good for consumers and the Japanese that they adapted to it, but the tariffs were good for HD.
Thanks for your input :)
The irony is that the manufacturer most exposed to retaliatory tariffs is......Harley Davidson. Some might call that Karma!
Thanks for your input :)
I don't think it was a coincidence he chose the vegetable he did for the example.
What is the sound of a Harley? Potato-Potato-Potato-Potato
@@janeg4706 Especially because some companies will specifically try to bankrupt them. The most made in America brand (if not actual business). And associated with Republicans as well.
So we might see "okay, have 20% right back. Oh, and 40% on motorcycles over 750cc"
Or even HD singled out by name.
@@HALLish-jl5mo Canada has singled out HD by name a number of times.
Prices have been rising at alarming levels long before tariffs were implemented. For decades, there has been a global race to the bottom, driven by the pursuit of cheap labor. The trade imbalances eroded the middle class. The larger-than-life egos that cannot admit that de-industrialization was a big mistake create money out of thin air to "paper over" the distortions these policies have created. The result has been massive inflation. Another significant issue with global trade is that indirect costs are not factored into the price of the product. For example, Triumph motorcycles are shipped from East Asia to Europe via the Suez Canal. Who is primarily keeping the Suez Canal open for shipping to pass through? The US Navy. So, the US taxpayer is expected to subsidize the shipping of Triumph motorcycles. This is so much more complex than tariffs.
I agree, but it's a bit difficult to shoehorn everything into a sub-10-minute video :)
A fair bit of oil passes through Suez, en route to the USA. Just sayin'.
@ 5-10% of the total oil ends up in the US. The vast majority of the total shipping is not related to the US. Just sayin'
It doesn´t hurt to look into the numbers. Our world in data is a nice repository showing, that free trade had one major effect: the world is better off now!
The anecdotes that the US are paying indirectly don´t accumulate to a significant effect. The trade imbalances are just a description of what is, and don´t allow to derive any statement from them about the state a country is in.
If I buy bananas from you and you don´t want my meat, as you might be vegetarian, does this make you a bad person who is hurting me?
If you again want to invest in the US, which is not a transaction like bananas, but equity, does this hurt me? It´s import as well, as you acquire a plant (haha, irony) or something, as you don´t think that maybe your money is safe in your home country. Are you hurting me with this? NO! You bring me my own currency - Dollars!
@ yet wealth disparity has never been greater. There is no such thing as free trade. Fair trade must be constantly negotiated. Your examples are too simplistic. Like a meme. That simplistic thinking is how lifting the third world out of poverty at the expense of the industrialized middle class was deemed to be a good idea. A zero sum game. We could have lifted up the third world and kept the middle classes. Tariffs are a symptom of a greater sickness. A return to sound money and fiscal responsibility and 90% of these problems go away.
As someone who loves in America and loves Japanese bike brands and Triumph's bikes, I have talked with dealers about the increase in bike costs, and it's not great. It is going to hurt the industry, as well as create an even higher barrier to entry for a lot of people who may be interested in starting.
Yep :(
That could ne nice to come back to do good basic motorbikes without electronics and many useless gadgets
@@eduardoolivares9653 That would be nice indeed... but I am afraid that they aren't going to cut cost out of these. On the contrary, they are more probably to cut cost from things like build quality. Why? Because "build quality" is not easily advertised or even perceived by less experienced riders. The same goes for chassis components. On the other hand, all these useless gadgets can be advertised as "features" and better serve their marketing. They make a bigger impression on the average rider. I do hope I am wrong though...
spot on. Analysis seems correct to me .
Thanks👍😊
Awesome video! Good points for sure. I remember at university several lectures in macro economics discussed the harmful effects of tariffs. Hopefully a truce can be negotiated where calmer minds prevail. No one needs a trade war where no one wins in the end. Elon Musk said yesterday zero tariffs should exist between the US and the EU. I agree. Hopefully this train of thought will continue. Best!
Thanks for that. That was precisely my point: there are no winners in a trade war
Even if US and EU don't tariff each other, if they individually tariff other countries differently, they can still undercut each other. Regardless, they can both import goods manufactured in countries that the other does have tariffed to overcome those tariffs.
In the end, if every country doesn't protect their labor, it will simply be exported to a 3rd world country, leaving people without jobs, while the companies exporting labor make more than ever.
@ Yes , I figured you would get some flack. But hey, it’s your platform! Best!
Well your excellent biking videos are usually quite easy for me to understand. But this video required some thought and a good understanding in economics which I have no clue. It was certainly enlightening and a refreshing change to seat heights, fuel economy, ergonomics, tyre choice etc. Good job it was released on Sunday evening, and not a Monday morning which I think would have frazzled my brain. Thank you RM.
SW France.
I guess it was a bit heavy for a Sunday afternoon, but I thought, if I wait until Monday morning, the tariffs may have been cancelled ;)
You don't have a clue? perhaps you'd fit in with American leadership, at least you may bring some French class... something else they clearly lack
If people just stopped and thought things through it would be a lot harder for us all to end up in messes like these because the electorate would not allow politicians that have these hair-brained schemes. The basic concept of adding a cost increases the price to consumers (as well as encouraging thefts) isn't hard to grasp at all. Looking at many far right politicians it's not at all hard to see they lack intelligence either. If people actually thought, rather than believing headlines and lies...
hard to not feel let down by big swathes of society who say 'it's too difficult', 'I never understood that' yet vote.
Lotta cope in the comments about tariffs. Y’all don’t have to defend this regardless of your political ideologies. The tariffs could kill the motorcycle industry and that is NOT okay.
Thanks for your input :)
Buy Chinese.... Oh! You probably can't.
What a voice you have! Wonderful video, love when Econ and bikes come together (but not like this lol)
Thanks, Yammie :)
Excellent video RM. I don't necessarily subscribe to the Harley -> potato analogy, but I do think the US president is the colour of a swede (turnip)! 😂
Lol
Royal Enfields sales are not very big in the USA but globally are 1 million bikes.
Other more expensive machines that have a big stake in the US market will be hit far harder.
Harleys already in trouble are going to suffer a catastrophic decline due to component import tarrifs.
Thanks for your input :)
The competing force will be that people have less money so supply/demand kicks in. Motorcycles now need seat belts so that we can strap in for the crazy ride that's about to occur.
Nice video....food for thought. I need a few reasons to stop buying motorcycles, so it might be a good thing, for me.
Who would have less money? Tariffs mean that we buy fewer foreign goods, so the money stays in our own countries. Businesses rely on sales. Sales rely on people having money to buy. When people need more money, they negotiate for higher wages or quit for a higher paying job. That's supply and demand. You people never understand labor markets.
@@logangodofcandy You are correct, people need money to buy things.
Yeah, but when people have less money interest rates, also drop so then money is a lot cheaper tomorrow that’s a supply economics and when money is very cheap to borrow That Spurs economic growth so then people will have more money.
Maybe, I guess there's too many factors to consider, alternatively when times are uncertain people tighten their belts. Probably all comes down to the labor market, if we see job losses, money will be super tight, you can't borrow money if you don't have a job. If there's plenty of jobs, maybe you're right.
Over the years I've bought various motorcycle apparel from the U.S and every time it was stopped at customs then I had to pay tax on it, but no other country has this happened... so I think Trump has a point...
Thanks for your input :)
Well, since Brexit anything bought from the EU, with a value of over £135, will have duty applied.
Many of the shops based in the EU that I purchase from stopped selling to the UK for a few months while they figured it out. Almost all (knowing we, as customers, like things simple) have altered pricing to incorporate import costs... but we still pay them, they have'nt vanished. Oddly many EU shops are still better value than UK but that just shows what a rip off the UK is.
Well done that Man, gritty truths will out! I'm surrounded in my club by machines going back to the 40's, the owners trundle around this Glorious Isle blissfully unaware what you are 'on-about', one has just come back from the blacksmith with a repaired girder fork and that bike will see out anybody watching this vlog! Oh, and they will not watch your unearthly production because trust in, 'them new fangled electronic boxes' hasn't arrived yet! Do laugh but also think deeply, fun on two wheels is what matters to the individual, but I'm gutted for the supply chain!
Thanks for your input :)
Good explanation; what was missing is that tariffs or inversely government subsidies for internal production already existed prior to the new US tariffs. What we need is an elimination world wide of internal production subsidies as well as all tariffs.
Absolutely, I was making the case for a completely tariff-free global economy. Thanks for your input :)
A classic example; Airbus and Boeing. Both are supported by government in different ways, and the cost per seat on a new aircraft is around $500,000 per seat on a new bird. Just nuts.
@@tomg6284You say supported by government but remember some people will think that's OK, doesn't affect me.
Tell it like it is and say 'supported by taxpayers'.
Governments don't have money without taxpayers or debtors (and they couldn't get loans secured if they had no tax income).
Working people always foot the bill.
Sadly, the aging of riders was killing the motorcycle industry before donnylon '25 started. I was planning to head back into Canada this summer. Let's hope that remains physically possible.
You’re right. A topic for a future video, perhaps😊
@@Candywarhol that is true, but I think main reason is the cost of motorcycle these days, with every modern advantages of modern manufacturing, prices just keep rising, R&D is very limited, just look at advancements from model to model, minimal at best, I praise Chinese bikes precisely for showing everyone what a ripoff motorcycle manufacturers are.... to get back to your question, before buying first bike person has to have, proper vehicle, housing solved, family fed, after all that solved, you have 40 years at best...
@@Cartmanvb Chinese manufacturers haven't "shown everyone what a ripoff Motorcycle manufacturers are". They have produced cheaper bikes because their workers have low wages, and no rights. When you are happy to work for 10% of your current income, and have no rights as a citizen, get back to us. Chinese items will only be cheap as long as they have competition, and their workers are content to work for low wages. Once they are the pre-eminent supplier guess what? Yes, the wages they pay will have to rise, and the prices will go up. Be careful what you wish for...
@@Cartmanvb Are you suggesting KTMs were overpriced :) !
In Australia, we haven't bought into the reciprocal tariff process. Motorcycles here are a discretionary spend, often for senior riders. The trade war is likely to produce inflation as secondary markets in Asia are impacted by the trade war and perhaps buy less Australian. Cost of living pressures will potentially reduce discretionary spending here. So, in the short term, we may get some bargains as dealers offload inventory followed by further reductions in sales and dealer networks as demand falls. This trend was already under way here.
Interesting feedback, thanks 😊👍
Every country has their own industry. Tariffs should absolutely be out in place to protect their own industries, or all jobs would be in China and India. Produce local goods, sell local, buy local.
Trump has said Aus will be left as is because of the already huge imbalance of trade in the US's favour...
@@Free_Ranger_CT110 That's what the Australian Government hoped for, however Australia is now subject to a 10% tariff for exports to the US. The following is from the Department of Foreign Affairs and Trade: Most Australian-originating goods will be subject to tariffs of 10 per cent on import into the United States. These tariffs take effect from 12:01AM on 5 April 2025 EDT (3.01pm Saturday, 5 April AEST). On 2 April EDT (3 April AEST), President Trump announced his Administration's 'Reciprocal Tariffs' policy.
@@peterh.7078 that's disappointing to hear as I saw the clip where Trump specifically said no tariffs on Oz.
Amazingly well-said. Lesson in economics, in simple words.
Anyway... we must not forget that what may happen to motorcycle industry, will possibly happen to most modern industries, too. Computers and electric devices, household devices, building materials, clothing, musical instruments, etc. How many of these products will the consumer be able to neglect and put in the "luxury" category? Just wondering...
Thanks. Good point :)
Different but very interesting video RM. Thanks for making it. Watched all the way through to the end!
Glad you enjoyed it😊👍
Going to watch! Just started it. As an American who has only bought 1 new motorcycle, I haven't been able to afford a new motorcycle since 2002. The insurance for a Hayabusa in the states is $495 a month. The motorcycles they've been building the last 20 years are an abomination 1.) Too low of gearing for America's 80mph freeways. Modern motorcycles are geared INCORRECTLY, and should be legally required to have an overdrive gear. 2.) Too ugly, too much electronics, and impossible to repair at home.
@@starseeddeluxe Why not fix your gearing problem by changing sprockets?
Tariffs were supposed to be quota based to stop market swamping but certain people in power don't seem to have the ability to understand this....Hence the problem we have now which will have a domino effect
Thanks for your input :)
Let's say we happily price our locally grown potatoes at $13 instead of $10, an unwise and rather cynical move that would be quickly called out by our customers, and they would respond by just not returning to buy at this price, causing us to lose more money. It would be sensible then to keep fine-tuning the price of our potatoes to earn our customers' good will back... or perhaps avoid the PR disaster altogether by not even raising the price at all, knowing that more people buying local potatoes will encourage more local potato farmers to crop up, so encouraging more competitive prices amongst local farmers.
Thanks for your input :)
In the short-term inflation may well be the result, but in theory excess profits should attract increased competition and temper said inflation. Manufacturers from abroad may also set up local manufacturing to serve their foreign customers' needs. We may see that, but I think we may also see countries come to the table to negotiate freer trade deals to knock down their own barriers to trade with the US. Many countries have not been dealing fairly, that's pretty obvious, with China being the most glaring example.
Thanks for your input :)
suply and demand, who said China should import as much from the US as the US imports from China? You guys are trying to set entire new rules on the free market ffs.
People who depend of motorcycles as their daily commuter mostly purchase scooters or 125cc motorcycles. Pretty cheap, cheap maintenance, low consumption and little to no tax.
Good point 👍😊
What about all the tariffs other countries placed on the US that have been in place for a long long time? Who put those in place and why was it ok for them to do so?
The point I was trying to make is that ALL tariffs have a negative impact on
Thanks for an interesting and thought provoking discussion, and conversation starter. Hard to know which way this will all go, and I suspect even the perpetrator of this nonsense doesn't know where it will end up. A few American contributors below seem to still want to believe it's fine for the US to do all this - perhaps they should quietly give it some time before deciding it's all going to be fair and wonderful. I for one don't think it will be. Those of us watching this 'passing parade' from the relative safety of Australia can't see the sense in it. It looks rather like the new president is applying tariffs as a means of political control, but time will tell.
But it is all being instigated by an administration that apparently WANTS to cause uncertainty, willfully and intentionally, which businesses and markets don't like. With 'unpredictability' as a trademark, we can't hope to predict how it will all end up. But I think we are seeing 'simplistic economics' being applied to the entire trading world at the moment, and upheaval is never good for stability, economically or strategically.
I might just go for a ride! My only dilemma being which bike? Ducati or Transalp? Bitumen or dirt roads? Thanks for entering this fraught area, with your usual calm and thoughtful commentary. Nice to share a considered and logical discussion on such a worrying topic. Well done.
Thanks for your input :)
Hear me out - I really don’t think this will trickle all the way down to commuter bikes and scooters. That segment is incredibly price-sensitive, and there's very little room for manufacturers to raise prices without taking a major hit in sales. You're absolutely right when it comes to big bikes - weekend toys, cruisers, and sportbikes are far more vulnerable to this kind of pricing pressure.
Why? Because those models are more likely to include components affected by U.S. tariffs, and manufacturers have more leeway to inflate prices without immediately killing demand. But when it comes to utilitarian motorcycles - the kind people rely on daily - it’s a completely different game.
These bikes, much like mid-size pickups like the HiLux, are the workhorses that help mobilize half the planet. Manufacturers know this, and they’ll move heaven and earth to keep production costs down. If a few parts are hit by tariffs or other disruptions, they’ll find workarounds. The stakes are just too high to let affordability slip in this part of the market.
Thanks for your input👍😊
If the US matches tariffs to the same level as the EU does for US-Imports, why then doesn't the EU lower tariffs accordingly? I mean the wast majority was ignoring the probihitive import tariffs China has but suddenly goes crazy because the people in the TV said orange man bad while production is getting outsourced to countries like China for dacades.
Thanks for your input👍😊
@@David-uk3nv life is great for the bully when he's sure his victim won't fight back... But as soon as he gets punched in the face he cries to everyone who will listen about how he is the victim.
EU tariffs on US goods currently average around 3%, and US tariffs on EU goods were previously at a similar level. Trump has now raised the EU goods tariff to 20%. There's nothing for the EU to lower, they were broadly on par with the US tariffs. The EU's next move is likely to increase US good tariffs to the same 20% mark.
The EU has no trade agreement with the US so WTO tariffs apply. Why does the EU doesn't have a trade agreement with the US when they have agreements with almost anybody else you ask?
The US diesn''t only want low or no tariffs, they want the EU to abolish all safety and environmental standards and adopt US standards instead.
Some US manufacturers produce to EU standards, Ford has a Mustang for the EU, GM has the Corvette for the EU, Teslas Model S and X come from the US as well as the higher spec Model 3. US grass fed beef is quite popular. Just not the hormone injected variant.
Trump lied about numbers, EU and others numbers (tables he showed) ARE NOT tariffs that are imposed on USA by other countries. It's a blatant lie. Those are results of an insane redneck math formula which takes trade difference as the base. For EU he claimed 39%, the average tariff in reality is 1-2%, haha. Go, MAGA. On Trumps incompetent dream team is an "economist" Peter Navarro, he for years had coo-coo ideas, but Trump likes them, so have fun. If you will have next elections, maybe try to not vote for crazy con mans.
Nice analysis, good job
Thank you for your kind words of encouragement😊👍
A more immediate concern is now motorcycle theft.
As we saw during lockdowns - sales volume and prices or certain things (bicycles, dogs) rocketed leading. This led to increased thefts of these items (yes, even dogs) for resale.
If motorcycle prices rocket then resale prices will be more bouyant encouraging thefts.
This means the tariffs will not just increase prices but crime and insurance costs too.
Lock you bikes up well folks - if you don't we all see increased insurance premiums but also you might not be able to afford a decent replacement.
Thanks for your input :)
A level playing field is what we want, don’t make it sound as though tariffs are new. Tariffs won’t hurt the motorcycle industry, they already shot themselves in the foot. 🇺🇸
MAGA brainwashed. Enjoy your inflation and crashing retirement account. U winning yet?
Thanks for your input :)
I understand that Brits like big bikes with a lot of electronics and I'm sorry for the higher prices. Medium sized traditional bikes are quite popular in the EU and the prices a likely to be less affected. I'm sure everyone soon will prefer the bikes with less electronics.
Thanks for your input :)
@@fuglbird soon!...Many of us in the UK have ALWAYS preferred them, sadly too many of our importers seem to prefer the higher profit margins of the plastic gin palace toy shop
Let's not forget that manufacturers can choose to make other countries pay for the US tariffs : for example, if tarifs increase the price of your goods in the USA by 50 % and you know that the USA population cannot afford the 50 % price increase, you could increase prices worldwide by 15% instead +50% in USA to help selling more in the USA
Thanks for your input :)
Thanks for your input
If there is enough demand in the US for motorcycles and they can be built cheaper in the US then foreign manufacturers will start building them in America. I live in the Philippines and the HD Nightster is right at $14K while the same bike in the states is listed around $9K.
Over 70 countries as of today are in negotians to do reciprocal tariffs.
Thanks for your input :)
So basically, if everyone drops their tarrifs to zero on american goods and the reciprocal policy is followed, then everyone wins. Reciprocal tarrifs are just that, Reciprocal. If you are fair, we are fair. the motorcycle industry and nany others could flourish with zero tarrifs and zero trade barriers world wide.
Let’s look at the 40% tariff imposed on the Falkland Islands by the US government. The Falklands buy nothing from the US. All goods come from South America or the UK. The Falklands export fish to the USA. That’s all. The tariff has been imposed on the trade deficit. This means the difference between exports and imports. So the price you pay in the states for fish from the South Atlantic (Sea Bass, Squid) will go up 40% for the consumer. This will lead to less demand so people in the fishing industry in the South Atlantic will lose their jobs. How utterly ridiculous is that?
Thanks for your input :)
@@efferit11 there is no "being fair", the entire thing hinges on the idiots in the trump administration mistaking trade imbalances for tariffs.
Clueless as american leadership. Please review how the figures were acheived and then come back to the grown ups table...
@@petittrainguernsey3297so if the fish go up in price and the fish don't get purchased it's America's fault? Sounds like a you problem, America will find food it's willing to pay for.
The idea is to raise prices so much that companies will move manufacture over here, but i don't hear ducati, suzuki or yamaha or anybody else moving manufacturing over here, do you?
That will definitely work
why would any country destroy their own factories in the favor of the bully of the world?
I’m so grateful I just snagged my bike before this was passed
Damn it's been 2 days, give it some time, you will see a price decrease.
Lol motorcycles aren't even in the 25% tariffs yo. Foreign made helmets are excepted too.
Inform yourself.
Thanks for your input :)
I love the tariffs, and it’s about time. People seem to forget what NAFTA did to US manufacturing. If tariffs are so horrible, then why do other countries tariff US goods coming into their country? Because it protects local manufacturing. Not difficult to understand. If bikes doubled in cost over night, I would not care. Just wait until factories suddenly decide that making bikes HERE is a really good idea! Jobs. Money. Middle class. How long did it take to move our jobs and factories over seas? What would you give to have them back? If this isn’t important to you, then I don’t know what to say to you.
Thanks for your input👍
@9:40. Not sure how US imposing a tariff will automatically make all motorcycles prices rise in the rest of the world. Seems like demand from the US will drop significantly but won't the rest of the world just keep going?
Thanks for your input :)
Motorcycles aren't even targeted by the tariffs lol
The EU's retaliatory tariffs do target motorcycles though! So it sucks to be Harley Davidson, but as an American, they suck to begin with imo.
The issue with tariffs is that people forget the basics of international trade. When Americans swap their dollars for yuan (or whatever) for 30 years, it causes the dollar to depreciate against foreign currencies. This makes imports expensive. Therefore, the gains of cheap labor/resources are quickly eroded by currency fluctuation.
The current global trade regime that allows Wall Street to profit and DC to leverage foreign governments is predicated on complex currency manipulations that are not free. In the case of the US, the hollowing of the working class has led to public debt and interest expense. Effectively, retirees and poor people are paying for the trade deficit because their programs are being crowded out by interest. Tariffs shift the cost of the trade deficit back to consumers and hopefully to the countries and companies who are racketeering off of our fake perpetual trade deficit. The US is in an existential crisis. We reached this point by concern-trolling and gaslighting ourselves about the importance of keeping prices down, even if it means we must pay $1T in interest on our $36T public debt. I’m not willing to bankrupt the US to pay $1500 less for a KTM.
Thanks for your input :)
Thanks for your input
It’s not the tariffs raising the prices by an insane amount… it’s mostly greed.
Just stop buying new
Thanks for your input :)
Many other countries are already paying tariffs. Tariffs are not what is breaking the motorcycle industry. The cost of EURO compliance is, as it makes it much more expensive for manufacturers to build and design a compliant motorcycle.
Thanks for your input :)
USA and China have more strict requirements than Euro 6. USA since 2014, that's how they found diesel gate.
Yes, and and an introduction of more and more useless gadgets, from color screens to ride by wire. We pay for all that R&D nobody asked for.
Some US states have equally bad regulations. Regulations and taxes both greatly increases prices.
@@forthphoto china has no intention of enforcing Paris accord or Euro x type regulations in china
American here, we enjoyed the best economic recovery post COVID out of most developed nations. We also have benefited from global trade, and having the global currency be the dollar making us the wealthiest nation on earth. It is my opinion that due to escalating wealth inequality here globalization and other countries trade deficit's are being used to scapegoat growing dissatisfaction with the erosion of the middle class. The best part of all of this is the plan is for the tariffs to be used to fund a tax cut that will primarily slash the taxes of the top 1% earners. Just my take, apologies to the rest of the world.
Thanks for your input👍😊
Well, 50 countries including the EU & Japan just caved to the tariffs that have been stealing from the USA. I wonder if they’ll ever sell the Tracer 7 in the USA?
Thanks for your input :)
Looking through the tariffs, *It seems* like motorcycles aren't subject to the tariffs(I'm not a lawyer, and it looks like something that just fell threw the cracks.). Just like you said tho, I don't see dealers not hiking up the price on them and blaming the tariffs anyway.
Thanks for your input :)
Prices have been rising considerably over the last 5 years as have automobiles. In the end motorcycles are not a necessity in most western economies. Many will pay the inflated prices, but many will look towards the used market.
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Pricing is a complex issue
Anglophone countries were the first to massively develop consumer finance that wasn’t done with the consumer at heart, rather the financial services sector.
Now we have all had a taste of punching way above our weight with the likes of PCP products used for cars and bikes etc, this method of “purchase” has exploded with trail commission benefits for referring dealers etc, but hugely proinflationary for bike prices.
In an interrelated way, put simply if people can find a way to finance a £/€20,000 motorbike then industry will be encouraged to increase prices inline with consumer price tolerance
Thanks for your input 👍😊
No one cared about tariffs until the U.S. raised theirs.
Economists have always disliked them
@@RocketMan_Moto Sure. But the average person or youtubers never mentioned them. I'm not a fan of them from any nation, but what I say is true.
The US says, OK we’re going to mirror what you are already doing to us and suddenly that’s not Ok? Why? The end result should be NO tariffs. If your product is quality then it should sell well, right?
That was literally my point: a tariff-free global economy :)
It won’t last. Japan will go zero tariffs very quickly if not already. But bikes are a luxury so I don’t see many sales anyway till the economy fixes. How ever long it takes.
I dont think the tariffs are a good idea but your example of inflation is not quite right. If the original potato seller was selling at $10 just because the outside competion was taffied does not mean he could raise his prices unless no one else in the country was selling potatos. The market price in the country had already settled at $10 for potatos and any increase would slow sales.
Tariffs make it more expensive to import. So, the supply at $10 is reduced to only what we have before tariffs. Extra potatoes that need to be imported would be a higher price. Now, the local potato economy can either expand their production to increase their wealth, or they can raise the average price of potatoes. Basically, US potatoes are $10, terrified potatoes are $12, and US potatoes go to $11 and production increases, because that's a 10% increase in income. Eventually, the scramble to increase US yield due to the extra value of potatoes will meet demand, and prices will go back down, mostly. In the end, all the money is paid to Americans, Americans buy all the potatoes, prices slightly rise and we have higher wages.
Thanks for your input :)
Well put. Prices are going to climb now. They see the carrot and will run with it. As with all tarriffs the consumer always pays them. Til they say enough is enough and stop buying. The economy was already fragile and this will bear this out quickly. Food over motorcycles. Meds the same.
Thanks for your input👍😊
potato farmer increases prices by 30%, almost all of that profit margin. He also has his income tax reduced because of revenue from the tariffs. In Canada we ate 15% tax on all goods and services in 1990. it's going to be fine.
Thanks for your input👍
U are correct. This tariff war is ALL EGO! The little guy is the one who suffers.
Thanks for your input :)
bro anything thats "made" in europe is made with stuff from other countries.
The rich have to sell things of value to people that can buy them. That's why wages arent $1 and bikes aren't $1m
Ahh, China bought that mill and China closed it.
China is long term in it's evil plans.
Thanks I enjoyed your thoughts supply chain economics- well considered
Like you said Used bike prices will also increase
Glad you liked it👍😊
Let tell you what to imagine..... Forcing people to buy new motorcycles and not to not buy fine 2nd hand motorcycles because of emissions. This at the time when disposable income is at the lowest and the new Chinese motorcycles, latest Euro emissions compliant, invade the EU market at 2nd hand motorcycle prices.... Prices will fall because people cannot afford those prices....
Thanks for your input 👍😊
I have ALWAYS tried my very best to buy British, to support small businesses and keep the profit in the UK..but always found prices undercut by foreign pricing..I can't keep British business afloat on my own and our government wouldn't help them either way.. don't even mention the unions.
Thanks for your input👍😊
Some of that must be greed though. I can buy kit made by an American company cheaper from Germany (including the duty) than I can in the UK. UK stores will sometimes have sales and can match these prices... so t's totally doable, but they choose to charge more.
Not sure your beef with unions. If workers can be paid less and treated worse by bosses prices won't be any lower just the divide between wealthy bosses and the masses will be even higher and the risk of more people being pushed into poverty will be greater.
@@thebrowns5337 my beef with unions is their reluctance of streamlining, modernizing and competition. Our motor industry is a prime example
Somehow I doubt Ducati, BMW, or Moto Guzzi will move production to the U.S. I wouldn’t want that anyway, a motorcycle is not an appliance to me. I think the world’s motorcycle manufacturers should at any cost eliminate American made parts and if that means utilizing less tech, good!
Thanks for your input :)
Americans will purchase those Ducati's simply for a bigger price and cause an inflation. Dollar printing machine is about to go brrrrrr.
I suspect what you refer to is already happening; that European manufacturers will already be seeking non-tariffed alternative sources for those items affected. But this is a huge part of the Trump misunderstanding - Ducati and the like will never move production to a nation with such high labour costs. As we can all see - manufacturers are increasingly moving to countries with lower costs of production, not higher. And if this current process reduced the emphasis on electronics on our bikes? Yes, I agree that would be a step in the right direction. Too much 'electronic bollocks' on new bikes now.
Lol China has over 5 million slaves, more than the US ever had, and you demand that we buy all our stuff cheaply made by slaves.
I can see you, KKK
Industrial manufacturers need trust in governments. And that has been destroyed for many years, and not just by tariff policy. I think Americans will only wake up when they experience firsthand that their jobs and their savings are gone, and they can no longer finance their daily lives. Good luck.
Talking about ripple effects: what Asian manufacturers won't now sell in the US is likely to be offered to the rest of the World at a cheaper price, putting pressure on say the EU to also put tariffs on those to protect European manufacturers.
On the""optimistic" side, that and the fact that there is a decrease in motorbikes' sales across the board makes for a good moment to buy one in the EU, I've noticed significant discounts on 2024 unsold stocks, and even on 2025 new ones.
Now if you own or have your heart set on a Harley/Indian and you don't speak "American" yeah, you're f....ed for the foreseeable future.
No winners in a trade war :(
Harley Davidson were already super overpriced before any tariffs, it's why they're not popular anywhere else other than USA.
@@fs5866 I looked around a HD slaesroom last week (the dealer is now a Piaggio dealer too and my Guzzi needed a service). I saw HDs for £30k! Blew my mind.
@ Harley have lost the plot decades ago and never got knocked in the head to wake up, regardless of Trump's tariffs.
Very we explained. Thank you
Thanks, Charles :)
The truth is that the tariffs you mention will actually be insignificant. Motorcycle prices are going down. Look at the Honda Hornet and the GB350, any Royal Enfield or Chinese bike. American and EU input into the world of motorcycles is minimal. The winners are all feom Asia.
@davidlangfield7004 Honda have already increased the price on the Hornet 1000 from the original launch price so they are rising
The prices will, and already is, rising everywhere no matter if that country is directly impacted. Plus the retaliatory tariffs and the full crash is yet to happen. But no, you wont be able to snipe tariff-free countries and think youre gonna get a deal.
Thanks for your input :)
The motorcycle industry, and market in the US, UK and Europe is might amount to a million toys per year combined. It is dwarfed by the motorcycle industry and market around the world, with the countries such as Thailand, India and others producing millions of machines which are embraced as practical transport by folks in SE Asia, Africa and South America.... and a few in Europe who have seen the light.
Thanks for your input :)
But if I keep my potatoes at 10 euro a KG, and not bump my price up to "cash in", then I get a bigger local market share ;-)
If I own a van maker I would be doing all I can to get my parts built local also.
Cant be done..... it once was and cant often means you do not want to.
Thanks for your input :)
I'll guess they'll have to move to a mutual zero tariff free trade.
Thanks for your input :)
Every one looks at the tree and forgets the forest, US has a 35 trillion dollar unplayable debt, we are all screwed for a long time we just didn’t know it yet, it has to burst some how, independence of the root that takes.
Thanks for your input 😊
I'd say reciprocal in lieu of retaliatory.
Subtle difference, but I like it👍😊
Look up how the percentages were crudely put together via a heavily decontextualized consideration of trade imbalances, and you may consider using the word “nonsensical” in place of either.
Nicely explained., I'll share this VID with my friend Donald, I think he needs it explained as simple as possible.
I can send you the ‘For Dummies’ version, if you like
@@RocketMan_Moto I think you need to put your libby bias to one side and think a little as to why Trump is doing this..
@@johnm2871 because he has no idea what he's doing. speedrunning the collapse of the US-led western alliance.
@@johnm2871"then, in 1913, for reasons--------- unknown to mankind, they introduced the income tax. So citizens, rather than foreign countries, would fund our government." -Trump, about Tariffs, on April 2.
He still thinks foreign countries pay his tariffs. So as much of a "ah ha" moment you think you just had, remember that he may say tariffs are paid by foreign countries, they arent.
So why do you think he says that when its not true? Is it malicious, to decieve the American people that he isn't just adding a new tax while lowering income tax for the rich?
Or is it accidentally, that he keeps accidentally saying they pay it when he meant his people pay it. That's not a good look, a president who despite continued correction still slips and says the opposite of what he means? That sounds worse than sleepy joe was before leaving office...
Whats your thoughts on why Trump has continued to say an untrue rhetoric for 3 months? Could this be a common theme for him? Maybe? Why has he slashed DEI but doesn't fill his own cabinet with "merit" but rather "loyalty"?
Idk, things to think of while drinking your American whiskey no other countries are buying anymore.
Well put Squire, get your bike orders in now.
🇬🇧
Sound advice🫤
I agree with all your comments about the effect of tariffs on the motorcycle industry but the people I feel sorry for are those in mid-working life or approaching the end of their working lives who have built up savings for their retirement, Those people will loos much of their retirement funds and the flow-on effect lasts for the rest of their lives. This is all being done by some egotistical madman millionaire who lives in a fantasy world not caring a fig about the type of people he claims to represent and who can't issue a few sentences without turning them into a lie. Why is this happening? How can this happen? And do all those American idiots who voted for him realise what they have done? Aaaagggghhhhhhhhh!!!!
We have a cult of people in the country that think Trump can do no wrong, and unfortunately those people have a right to vote. They were conned, but aren't smart enough to realize it, or honest enough to admit it.
We saw a similar $hitshow with Brexit a few years ago…🙄
There is just no way to ruin the motorcycle market. The motorcycle market in America is "You buy a Harley." That's the solution. When I meet people, they always have a Harley or they are in the process of getting a Harley. And, when discussing cost, the cost is never an issue. And in fact, people enjoy spending a fortune on a Harley, because of the status symbol. One man I knew had a $45,000 new Harley. Another man had a used Harley that was $12,000. And they didn't complain at all about the price.
Don’t tariff the US and we wont tariff you. Easy resolved.
@starseeddeluxe huh? What about off road, motocross, regular street bikes, side by sides, etc? These are huge in the US, but Harley offers nothing in these segments.
I fear that Even the cheaper bikes will be affected by this. A CRF300L has a very small profit margin, so these bikes may not even be imported because nobody will be willing to absorb the hefty tariffs, and a 20% price hike will kill demand.
Yes🙁
Economies of scale in manufacturing plants are an important factor. Many individual motorcycle models have inadequate sales volume to support the cost of building manufacturing plants in multiple countries. In many cases a single plant worldwide is the only potentially cost effective method. Proliferation of tariffs between countries could make the existence of such models economically impractical. I am merely making an economic observation, I am not making a political value judgment about policy choices.
Good points😊👍
i buyed an Yamaha Tracer...and i am happy
Enjoy👍😊
Lucky me to get my bike in the summer of last year, otherwise it wouldn't be possible. ( Even if my Aprilia's Italian brand my model is manufactured in India )
I was just saying the same to Mrs RM; so glad we don’t need any capital goods at the moment
Law of unintended consequenses at play once more
Thanks for your input :)
Inflation is an increase in money supply. If US money supply increases, because US aren't sending money overseas for cheap goods, and instead sell more American goods, American wages will go up, due to demands for higher wages across the US market.
Thanks for your input :)
Thankfully I am not buying a new bike in the next 3 years. Besides I am hoping that they will end up in trade agreements instead of trade wars
Thanks for your input :)
tell me about it :P i'm from europe ... and i have an indian ftr ... i buyed oem oil kit change from usa a few days ago ... ebay refunded me cause it got turned back in the us lol.
Thanks for your input :)
A very interesting and comprehensive video on the state of things. I am astonished how one twit in the White House is bringing about changes that are affecting so many countries and will ulitimately cost the everyday person. I guess that's a discussion for another day but the ramifications of tarrifs is not good and history has shown that.
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The only American motorcycle that I had any interest in was the FTR and now it's dead. I don't want to be a Pirate SM leather daddie.
Yes, seems to me as though Indian dropped their best model :(
So which country has motorcycle tariffs? The E.U? No. Japan, NO. China yeah. So really it's about tariffs on Chinese bikes? Because E.U. and Japan no tariffs, which actually makes motorcycles cheaper.
Thanks for your input :)
People will hold on to their bikes and second hand will hold there ground
Almost certainly
Your 10$ potato example is flawed. You say that the 10$ vendor will raise his prices because he is now competing against someone who can go no lower than 16$ due to tariffs. But that fails to take into account that there are other local potato vendors and those who do not raise their prices will have a competitive advantage against those who do.
they all raise their prices & compete amongst themselves around the 13 mark
@chip9177 What happens to the sales figures of those who keep their prices low?
@brazoon1 Trump put a tariff on washing machines last term, it raised the price of domestic washers AND DRYERS by the end of it.
@@mattymag2394 so why did Biden extend the washing machine tariffs until 2023? And why didn't he remove most if the tariffs against China?
Thanks for your input :)
It’ll work for a short while (tariffs) then it won’t, I’ve seen it before and some idiot will do it again, wait a minute an idiot has done it again .
Thanks for your input 👍
The weird thing (other one) is that even a 100% tariff would not make a local produced alternative reach profitability. I was watching today an american dude that imports it's bottles from China because producing the same bottles in US would cost him 800% more. The labels alone compare at 0.25cents each from china VS 2usd in america. it is bonkers...
Good to see you mention the local producers hicking their prices to "capture" the new profit margin now available. It is something nobody speaks of, and everyone is betting that "only imported goods" will see their prices rise. So, American Bilionares will even get more money.
Also the "apply the tariffs and the factories will come" argument is mute: 1- Americans are enjoying excellent unemployment numbers, and nobody wants to operate machines anymore; 2- nobody will invest on building a factory, knowing that this might be a temporary thing either by Trump renegotiating the tariffs with each market, or the next president. Its an artificial price hike that can be removed with a signature. Nobody bets millions against this.
Even funnier part is... China brands are the ones that enjoy more independence from american produced items. SO their prices will not suffer that much, and they will beneffit from all this.
Thanks for your input :)
Like gravity the law of supply and demand will set prices. As an American and a biker I’ve always been mystified by the tariffs imposed on HD by Countries around the world. Now they are squealing like stuck pigs when reciprocal tariffs are imposed on them. It’s about time America shuts the free ATM down.
Thanks for your input :)
Harley has let their customers down … but it appears that their CEO (the German DEI architect) is leaving or was most likely persuaded to leave. Things can only get better from here… ?
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Well,..... They have become a bit expensive don't you think?
Yes
Why is it OK for them all to have tariffs on the US then?
It isn't and that was the whole point of the video. There are NO winners in a trade war.
They don't. We just imposed tariffs on uninhabited islands in the Pacific. Should be a red flag that you're being lied to.
@ They don’t?!! 🤣🤣🤣 Read a book.
@ What book?
@ Let’s start with history of economics and its use of tariffs. Then move to mass hypnosis.
Good thinking. Nick
Thanks, Nick :)
So as sad as it makes me... the US bike market is fairly irrelevant from a global sales perspective (other than cruisers). So while the bikes I want will get a lot more expensive (and I certainly won't be buying a H-D or Indian... I'm old but I'm not THAT old)... I don't think it'll hurt the global industry that much.
Thanks for your input :)
I think it depends on the type of bikes. The low displacement bikes are barely sold here. But the expensive higher margin bikes do sell here. So it's a smaller number but they make a lot more money per bike
Only in the USA. In the rest of the world, it will be just fine.
The rest of the world does it, too..they just tell you it's good when they do it
Thanks for your input :)
On the other hand, the used bike market might recover.
Still they will need new spare parts.
Thanks for your input :)
you called the covid pandemic "different" than tariffs - because you claimed it was natural and not "man made". I guess you didn't hear about it, but not only was covid man made, but the reactions to it were man made - which artificially drove up inflation. From that perspective, covid and tariffs are the same. just because one was duped into thinking the man made reactions to covid were somehow good, doesn't make those inflationary reactions any more noble than tariffs.
Thanks for your input :)
Yes, tariffs have existed for a long time - but that doesn’t mean they make sense today. In a global economy, protectionism often backfires and hurts all sides involved. Saying that a 10% tariff only causes a 2-3% price increase is a massive oversimplification. It ignores the ripple effects - rising input costs, weakened competition, and ultimately, higher prices for consumers.
Trump often throws around made-up numbers to justify his actions. He claimed the EU charges 39% tariffs on US goods - but that’s just not true. For example, the EU imposes 10% tariffs on cars, while the US applies 2.5%. That’s a difference, sure - but it’s nowhere near 39%, and most goods are taxed at 0-5% or even less.
He also misrepresents VAT (value-added tax) as if it were a tariff. In reality, VAT applies to all products sold within the EU, including domestic ones - it’s not a trade barrier, it’s a general consumption tax.
As for "bringing back jobs" - tariffs don’t fix structural issues like lack of infrastructure, skilled labor, or supply chains. Companies move production where it makes business sense, not based on slogans. Audi and VW already produce in the US - the idea that they’d suddenly move everything due to tariffs is exaggerated.
Protectionism might win political points short-term, but it hurts economies in the long run - including the one it’s supposed to protect.
I hate politics and gov around the world :D
Thanks for your input :)
Meh. I have a new gen 3 hayabusa, I'm trying to get a Z900 as fast as I can before the markup hits again then I'm done for with buying bikes until things get back to normal. These 2 should be enough for at least 3 decades.
Thanks for your input :)
It aint going back to "normal" mate...This is all tied in with the great reset, which you must have heard before.
Simply after WW2 the U.S. industry was largely untouched while most of European and Asian were decimated. The U.S. help rebuild those countries industries with the Marshall Plan and not applying tariffs on goods from those countries sold to the U.S. Those countries decimated applied tariffs on U.S. goods.
Additionally the U.S. guaranteed European security since WW2 allowing EU countries to concentrate on rebuilding their economies.
The promise from the Europea countries made after WW2 that free trade with no tariffs once they got back on their feet. Not only did the European not drop tariffs on U.S. goods. Ut increased them while still not making good on their commitments to paying their fair share to Nato.
President Trump wants free trade with no tariffs but if Europe and China continues the taariffs then the U.S. will implement reciprocal tariffs. What the EU charges the U.S. the U.S. will charge the EU and others. The tariffs on U.S. has long been unfair and unheeded.
So calling the 2nd guy after being hit as being responsible for a fight after he returns the blow is ridiculous.
Thanks for your input :)