News You Can Use: Honda’s Tariff Relief, Kawasaki’s Surge, and Harley’s Advocacy Push
Your Weekly Powersports Roundup – Unpacking the Latest Industry Shifts, from Tariff Strategies to Market Leaders and Dealer Advocacy
By Raine Devries @ 2 Wheel Media
The powersports industry is navigating a dynamic landscape in 2025, with major players like American Honda, Kawasaki, and Harley-Davidson making headlines. From tariff relief to advocacy efforts and shifting market leadership, here’s your SEO-optimized recap of the week’s most impactful news in the motorcycle world.
American Honda Absorbs Tariff Costs, Easing Dealer Burdens
In a bold move, American Honda Motor Company (AHMC) announced it will absorb tariff-related cost increases, opting not to pass surcharges onto dealers or consumers—for now. This decision provides temporary relief to Honda dealers grappling with economic pressures and a declining U.S. motorcycle market.
Why It Matters: By shielding dealers from tariff surcharges, Honda sets a precedent that could pressure other Original Equipment Manufacturers (OEMs) like Yamaha, Suzuki, or Kawasaki to follow suit. As the industry watches closely, Honda’s leadership could reshape pricing strategies across the powersports sector.
Pro Tip: In the motorcycle industry, an OEM (Original Equipment Manufacturer) is the company that designs and produces motorcycles or components sold under its brand, such as Honda, Yamaha, or Harley-Davidson. OEM parts are factory-standard, distinct from aftermarket alternatives.
Tariffs: A Double-Edged Sword for Powersports?
The Trump Administration’s tariffs have sparked heated debate in the powersports industry. Initially criticized for potentially increasing costs for consumers, the tariffs are now gaining traction as a strategic win. With the stock market hitting record highs and millions flowing into U.S. coffers, some industry leaders are reconsidering their stance, suggesting the tariffs could bolster domestic manufacturing and economic growth.
What’s Next? As Honda takes a proactive stance, will other OEMs align with this approach, or will they pass costs onto dealers and riders? The industry awaits answers.
NPDA and Harley-Davidson Team Up for Advocacy
The National Powersports Dealer Association (NPDA) partnered with Harley-Davidson to submit a position paper to Congress and the Motorcycle Caucus, addressing critical challenges like declining sales and excess inventory. This collaboration signals a unified push to influence policy and stimulate demand.
Key Highlights of the NPDA-Harley Partnership
Unified Advocacy: The NPDA, representing dealers across all powersports brands, joins forces with Harley-Davidson to amplify the industry’s voice.
Legislative Focus: The position paper targets the Motorcycle Caucus to push for policies that ease financial burdens on consumers, boosting sales for dealers and manufacturers.
Dealer Challenges: Declining sales, excess inventory, and economic headwinds have strained dealers, making this advocacy effort critical.
Harley’s Struggles: Beyond sales declines, Harley-Davidson faces backlash over its overseas production (e.g., Thailand) and past DEI initiatives, which have alienated some customers and dealers.
Why It Matters: This partnership could pave the way for policy changes that revitalize the powersports industry, offering relief to dealers and manufacturers alike.
Kawasaki Overtakes Honda in U.S. Motorcycle Sales
In a historic shift, Kawasaki claimed the top spot as the best-selling motorcycle brand in the U.S. through May 2025, with a remarkable 23.7% year-on-year sales increase. Meanwhile, Honda saw a sales decline, losing its long-held market leadership.
What’s Driving Kawasaki’s Success? Innovative models, aggressive marketing, and strong dealer support have fueled Kawasaki’s surge, even as the broader market struggles.
U.S. Motorcycle Market Faces Steep Decline
The U.S. motorcycle market continues to struggle, with a 7.8% year-to-date sales drop through May 2025, totaling 218,923 units sold. April sales fell 6.3%, and May saw a 5.6% decline, marking the industry’s worst start in a decade.
Why It’s Significant: Economic uncertainty, high interest rates, and shifting consumer preferences are dampening demand, challenging dealers and manufacturers to adapt.
What’s Next for the Powersports Industry?
The powersports industry is at a crossroads. Honda’s tariff absorption, Kawasaki’s market dominance, and the NPDA-Harley advocacy push highlight the resilience and adaptability of key players. As economic and legislative developments unfold, dealers and manufacturers must innovate to navigate these challenges.
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