Close-up of olive green Harley-Davidson motorcycle fuel tank with urban reflections on paint, San Francisco, California, May 27, 2025. (Photo by Smith Collection/Gado/Getty Images)
Gado via Getty Images
Canada’s latest retaliation in its escalating trade fight with the United States lands squarely on one of America’s most recognizable industries – big motorcycles. And nobody is happy about it.
Beginning September 8, Canada will impose a 50% tariff on U.S.-origin motorcycles with internal-combustion engines larger than 800cc. That puts most of Harley-Davidson’s Canadian lineup directly in the path of the new levy, along with motorcycles from Indian Motorcycle and other U.S. manufacturers.
The tariff is part of a broader Canadian response to new U.S. duties imposed after trade negotiations collapsed. Ottawa says its countermeasures will cover $27.6 billion worth of American imports and range from 15% to 50%.
The choice is also political. Canadian Industry Minister Mélanie Joly has said Ottawa deliberately selected products tied to particular U.S. states as it seeks leverage ahead of the November midterm elections.
Harley-Davidson is headquartered in Milwaukee, Wisconsin, making heavyweight motorcycles an unusually visible target.
Harley-Davidson’s least expensive 2026 motorcycle in Canada, the Nightster, uses a 975cc Revolution Max engine and starts at C$13,099 including freight and dealer setup. Larger touring machines climb dramatically from there: a 2026 Street Glide starts at C$32,199, while a Street Glide Limited starts at C$42,949.
2026 Harley-Davidson Fat Boy
HDWhat it means and what it doesn’t mean
A 50% tariff does not automatically mean a motorcycle’s retail sticker price rises by 50%. Tariffs are assessed on the customs value of imported goods and manufacturers and dealers can absorb some of the expense.
But a duty of that size creates an enormous new cost somewhere in the chain, whether borne by the factory, distributor, dealer or buyer.
The scale of the trade is significant as well.
Canada imported about $170.4 million worth of U.S. motorcycles with engines larger than 800cc in 2024, according to World Bank trade data. That represented more than half of all Canadian imports in the category.
Harley-Davidson alone sold 6,434 motorcycles in Canada in 2025, nearly 5% of its worldwide retail sales. Canadian Harley sales have already softened: the company reported 3,735 retail sales there during the first half of 2026, down from 3,912 a year earlier.
That makes the timing particularly awkward for Harley. The company has been trying to revive demand under CEO Artie Starrs and its “Back to the Bricks” strategy.
In July, Harley raised its 2026 sales outlook after second-quarter North American retail sales increased 3%.
Some plants moving back to U.S.A.
The company has also been moving production in the opposite direction from what might help it avoid Canada’s tariff. In June, Harley announced it would bring North American production of its Revolution Max motorcycles, including the Pan America, Sportster S and Nightster, back to plants in Pennsylvania and Wisconsin. The company presented the decision as a commitment to American manufacturing.
Indian Motorcycle is exposed as well. The company says every new Indian motorcycle is assembled at its Spirit Lake, Iowa, factory, and its heavyweight cruisers and touring machines also fall above Canada’s 800cc cutoff.
The effect may not appear on every showroom floor immediately. Canada says U.S. goods already in transit when the tariffs take effect are exempt, while motorcycles already sitting in Canadian dealer inventories have crossed the border.
Replacement inventory imported after September 8 would face the new duty.
Electric motorcycles exempt
Electric motorcycles are outside this particular tariff classification, and many smaller motorcycles imported from outside the United States are unaffected. That could leave American heavyweight bikes at a sharp pricing disadvantage in Canada.
Bottom line? For Harley-Davidson, a political fight between Washington and Ottawa is about to become a very real problem on Canadian showroom floors.