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The breakdown in the latest trade talks between Canada and the United States is creating further uncertainty for businesses and consumers across the country — including Canada's powersports industry.
Moto Canada represents the manufacturers and distributors responsible for most of the motorcycles, ATVs and side-by-sides (ROVs) sold in Canada. Our industry supports a nationwide network of approximately 900 dealers employing over 88,000 Canadians in every province and territory.
With approximately 140,000 powersport vehicles sold in Canada each year coming from 15 different countries, the latest U.S. tariffs do not mean that Canadians will suddenly see a tariff added to every motorcycle, ATV or side-by-side sold here. However, the escalating trade dispute creates significant uncertainty for manufacturers, distributors and dealers operating across an integrated North American market.
As the Government of Canada considers new counter-tariffs in response to U.S. trade actions, Moto Canada supports Canada's efforts to defend Canadian economic interests. At the same time, we urge the federal government to avoid applying retaliatory tariffs to American-made motorcycles, ATVs, side-by-sides/ROVs, parts and accessories.
Previous Canadian tariffs on U.S.-origin motorcycles increased costs in Canada, contributed to lower sales and placed additional pressure on Canadian dealers, while doing little to influence U.S. trade policy.
The impact could be considerably larger today. Approximately 50,000 to 60,000 motorcycles, ATVs and side-by-side vehicles assembled in the United States are sold in Canada each year — roughly 40% of the Canadian market.
These vehicles are not simply luxury goods. Canadians, businesses and governments at all levels use motorcycles, ATVs and side-by-sides for transportation, emergency services, farming, forestry and other work, as well as recreation and tourism.
Adding tariffs to these vehicles would ultimately mean higher costs for Canadian consumers, reduced sales and inventory for Canadian dealers, and increased pressure on Canadian jobs.
The motorcycle market alone generated approximately $1.1 billion in Canadian retail sales in 2025, including parts and accessories, and experienced a significant decline from 2024.
Moto Canada's position is straightforward:
When the time is right, Canada and the United States need to return to the table and negotiate an agreement that keeps North American trade open and provides businesses and consumers on both sides of the border with greater certainty.
In the meantime, Canadian retaliation should be carefully targeted. Applying tariffs to powersport vehicles would primarily increase costs for Canadians and Canadian businesses while doing little to influence U.S. trade policy.
Moto Canada is actively engaging with the Government of Canada to explain the impact of these measures on our industry and advocate on behalf of our members, dealers, riders and the broader powersports community. We will continue working closely with our members, dealers and government partners as the situation evolves.
For Canadian riders and consumers, our message is equally straightforward: trade negotiations are a process with ups and downs, and we need to hold the course. The situation is changing quickly, and Moto Canada will continue to provide clear information about what these measures mean for our industry as decisions are made.
If you are a rider, dealer or other member of the powersports community affected by these events, we encourage you to contact your federal and provincial representatives. Tell them what powersports mean to your business, your community and your ability to ride.
The more governments understand the real-world consequences of these decisions, the better equipped they will be to protect Canadian interests.
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