Coalition of EU and US associations appeal to suspend retaliatory tariffs on unrelated sectors

29 Apr 2021

Coalition of EU and US associations appeal to suspend retaliatory tariffs on unrelated sectors

ACEM (Association des Constructeurs Européens de Motocycles – The Motorcycle Industry in Europe) and USMMA (United States Motorcycle Manufacturers Association) join the call on European authorities and US Administration to solve their differences without unduly impacting motorcycles.

A Coalition of 88 European and American associations has written to European Commission President von der Leyen and United States President Biden, supporting a suspension of the retaliatory tariffs in application, within EU-US ongoing trade disputes, hitting unrelated sectors.

The appeal by industry is made once again to build on the positive momentum of the suspension of tariffs imposed in connection to the World Trade Organization (WTO) disputes concerning civil aircraft subsidies for four months, hoping such agreement can be extended and built upon. The call is also made to overcome differences within the steel and aluminium trade dispute, in anticipation of the 1 June deadline and the application of further EU retaliatory measures, to avoid yet more collateral damage on unrelated sectors. Ultimately, the Coalition wishes a return to a positive, reciprocally rewarding transatlantic relationship, supporting economic growth and benefiting producers and manufacturers, their distribution partners, importers and consumers, and all associated sectors.

ACEM and USMMA join the call, as the motorcycle sector has repeatedly been unduly targeted within the EU-US trade escalation, over the last few years. US motorcycles are heavily impacted by the EU rebalancing measures devised in response to the US decision to impose a 10% tariff on European aluminium products and a 25% tariff on European steel products, as of 1 June 2018. Under Commission implementing regulation (EU) 2018/886, a list of US products, including motorcycles with a cylinder capacity above 500cc, have faced additional duties since 1 June 2018, when entering the EU.

As from 1 June 2021, European authorities are expected to double these additional customs duties, which will impose a 50% tariff on US-made motorcycles above 500cc, pursuant to Implementing Decision (EU) 2021/563 of the European Commission of 31 March 2021.

Quote

“This development confirms the urgency to suspend all additional tariffs on unrelated sectors, to avoid damaging escalations. We call upon the European Commission and the new US Administration to restart a positive transatlantic trade dialogue. We continue to strongly support a return to reason and for both parties to find a solution”, said Antonio Perlot, ACEM Secretary General.