The motorcycle industry just got hit with a punch to the wallet. New tariffs are raising prices on bikes, parts, and gear across the board, and both foreign and domestic brands are caught in the crossfire.
But there’s more to the story—and if you’re a dealer, builder, or even just a hardcore enthusiast who imports bikes or parts, this is the time to get smart about how you structure your moto-life.
What’s Actually Happening?
According to Powersports Business (full article here), here’s the quick and dirty:
- Imported motorcycles now face a 25% tariff, up from 2.5%.
- OEMs like BMW, Honda, KTM, Triumph, and others have already raised prices.
- Parts—engines, transmissions, electronics—are also affected.
- Even U.S.-built motorcycles aren’t safe, because they often use foreign steel and aluminum, now taxed at 50%.
- Harley-Davidson estimates the tariff hit could cost them $175 million this year alone.
It’s not just new bikes, either. These tariffs are also driving up the prices of used and vintage bikes—by 10% to 20% in many cases—as riders and collectors scramble to avoid the cost of new imports.
So what can you actually do about it?
Forming an LLC Could Save Your Wallet
If you’re just a regular rider, you’re probably thinking, “This doesn’t affect me… right?” But if you’re:
- Importing bikes for resale or restoration
- Buying parts from overseas
- Running a YouTube channel, garage, or eBay shop
- Building custom bikes or flipping vintage bikes
- Maintaining a large collection or fleet
- Selling riding gear or aftermarket parts
…then you’re already in the business of motorcycles, whether you realize it or not.
And that’s where the LLC (Limited Liability Company) comes in.
Here’s How an LLC Can Help You Counter Tariff Costs:
Import Motorcycles at Commercial Rates
As a business, your LLC may qualify for commercial import rules, giving you access to better shipping rates, potential duty drawbacks, and even the ability to dispute or defer tariffs depending on how your imports are classified.
Tax Deductions and Write-Offs
That 25% tariff on your imported engine? If you’re running a legitimate business under an LLC, it may be a deductible expense. So are tools, shipping, workspace, software, and more. You could reclaim a significant portion of those costs at tax time.
Access to Wholesale Pricing
Vendors and manufacturers are much more likely to offer discounts or dealer pricing to registered businesses. If you’re buying in volume or maintaining multiple bikes, this could add up fast.
Liability Protection
An LLC protects your personal assets if something goes wrong—whether that’s a product liability issue, a shipping dispute, or even a bad engine swap that leads to compliance trouble.
Build Credit and Scale
Want to grow your side hustle into a full-blown business? Forming an LLC allows you to build business credit, apply for small business loans, and negotiate supplier terms that personal accounts can’t access.
Real Talk: Tariffs Aren’t Going Away Anytime Soon
These policies aren’t a temporary hiccup. With trade tensions rising and global supply chains still a mess, experts suggest we’re looking at long-term changes to the cost structure of powersports in the U.S.
You can’t control international trade policy—but you can control how you operate within it.
Looking for a smarter way to beat taxes, tariffs, and inflated registration fees?
Read our full Montana LLC vehicle strategy guide
It’s packed with actionable tips on how to register your vehicle through a Montana LLC and save thousands—especially in today’s economy.
Don’t Just Ride It Out—Ride Smart
Whether you’re flipping vintage Honda CB750s, importing parts for your Yamaha R6 track build, or just stacking parts for your winter project, now is the time to get serious about protecting your money and your ride.
And forming an LLC is one of the smartest, easiest, and most powerful steps you can take.
Need help setting up an LLC the right way, with vehicle protection and regulatory compliance built in?
Check out Dirt Legal’s LLC services here – we specialize in helping riders, builders, and motorsports businesses stay compliant and ahead of the game.
Tariffs are here. Prices are climbing. But the riders who thrive in this economy will be the ones who adapt, think smart, and treat their passion like a business.
Start now. Ride smarter. Save more.
Read the full Powersports Business article
Let Dirt Legal help you form your LLC
