I don't know how many times I have to say this, but tariffs are taxes on the average citizen. They aren't paid by the country that's been tariffed, just us, the folks paying for the thing imported from said country. That's just a fact. And there's no changing it, no matter what a talking head says.
And while I agree that tariffs can be used to correct trade imbalances, punish a country for human rights violations, and potentially get better relations with other countries, the willy-nilly way that the current administration is wielding tariff threats and real ones against allies and adversaries alike who already have good trade relations with us is beyond the pale of anything that's useful to the American people. We're the ones paying for all this asinine posturing, no one else.
Which is why if you're a fan of anything from Japan, i.e. anything from Kawasaki, Suzuki, Yamaha, or Honda, well, all your powersports machines are about to see a pretty dramatic rise in price in the coming days and weeks and months, as the Trump administration has announced it's reached a deal with Japan to see a 15% tariff on all its imported goods.
Are we winning yet? Hint, we are not.
According to ABC News, "President Donald Trump announced a trade agreement with Japan on Tuesday, making it the largest U.S. trade partner to broker an accord as the White House threatens to impose tariffs on dozens of countries within days. Before the deal, Japan faced the prospect of a 25% tariff rate set to take effect Aug. 1. Instead, products from the fifth-largest U.S. trade partner will be slapped with a 15% tariff, in exchange for a willingness on the part of Japan to import some goods, among other concessions."
Basically, the current administration threatened an allied nation with a massive tariff of 25% and brought it down to 15% after they conceded they'd import some US-made products. What's unclear, however, is what those products actually are as those details are still being worked out. Yet, what will be part of it is a massive tax on the average American buyer, as Japanese products, especially those that go vroom, will see a 15% tax on them in the coming days.
The outlet furthers, "Japan purchased nearly $80 billion worth of U.S. products in 2024, while the U.S. bought about $148 billion worth of Japanese goods, according to the Office of the U.S. Trade Representative, a government agency. Cars and auto parts accounted for about $52 billion worth of imported Japanese products, making up more than one-third of products purchased by the U.S., government data shows."
Honda has already said that it would eat any tariff for the time being, given it has the ability to do so, though it conceded that it may change that policy if it needs to. However, Kawasaki, Suzuki, and Yamaha have yet to weigh in on the proposed tariffs, and given the state of the powersport market, it's hard to see how these companies will be able to eat any price hike. Which means those machines are likely to see some time of MSRP increase.
But again, there's a lot of TBD still in this "trade agreement." The administration is still negotiating terms and, given its track record of backtracking and chaos within this space, who knows if at the 11th hour it'll all go up in smoke.
Only time will tell, but prepare yourself to spend about 15% more when you roll up and ask the nice salesperson for a new Ninja.
