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Continuations of the EU-US trade war

This story began in April 2021, when the European Union and the Belgian Ministry of Economy deprived Harley Davidson of the right to use the BOI status, which allows importing HD products not as “made in America”, but as “of mixed origin”, and thus avoid protective customs duties on the import of certain types of goods. Having lost these privileges, Harley motorcycles were completely subject to the sanction duties, becoming more than 50% more expensive in Europe (April news about the increase in duty here).

113 Motorcycle Associations Defend Harley

This forced American and European motorcycle associations to defend Harley. As a result, the European authorities postponed the introduction of increased duties on American motorcycles with a working volume of more than 500cc until the end of 2021. But that was not enough.

Now 113 transatlantic associations are putting pressure on the leadership of the European Union and the United States in order to cancel the planned increase in duties and reduce the current ones. The alliance, led by the Association des Constructeurs Européens de Motocycles (ACEM) and the United States Motorcycle Manufacturers Association (USMMA), has approached European Commission President Ursula von der Leyen and US President Joe Biden for a resolution at the US-EU summit in Brussels on June 15.

Our association is asking the Transatlantic leadership to ensure the immediate completion of negotiations on steel overproduction, ”said ACEM Secretary General Antonio Perlo. -And not to wait for the next six months, during which hundreds of millions of euros in areas not involved in this situation will be spent on unreasonably high duties instead of investments in research and development required to restart the economies of the European Union and the United States.

The troubles began in 2018, when the Trump administration and the European Union began to impose on each other increased duties on imports of aluminum and steel. These duties have spread to the motorcycle market as well, forcing American manufacturers, in particular Harley Davidson, to seek new options for production locations. With the motorcycle industry still recovering from the covid economy and associated manufacturing challenges, ACEM and USMMA look forward to a return to friendly trade relations that will help manufacturers find resilience in this challenging time.

Although Harley avoided the 56 percent duty, their products are still subject to a higher duty, which has increased from 6 percent to 31 percent after losing BOI status. And even if the leaders of the EU and the United States refuse to continue the trade war, it is not known whether officials will go to the return of duties imposed from its beginning. We will wait for new news from the Brussels summit.

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