1983 motorcycle tariff

The 1983 motorcycle tariff, or Memorandum on Heavyweight Motorcycle Imports, was a presidential memorandum ordering a 45% tariff on motorcycles imported to the United States, signed by President Ronald Reagan on April 1, 1983, on the US International Trade Commission's (USITC) recommendation to approve Harley-Davidson's petition for import relief.[1] The tariff expired in 1988.[2]

During the first year of the tariff, the tariff was set at 45%, then dropping to 39.4% in the second year.[2] In the third year, the rate dropped to 24.4%, then 19.4% in the fourth year and 14.4% in the fifth year.[2]

In the early 1980s, Harley-Davidson petitioned the USITC, saying that Japanese manufacturers were importing motorcycles into the US in such volume as to harm or threaten to harm domestic producers.[2] The USITC agreed and recommend to President Reagan impose a 45% tariff on imported motorcycles with engine capacities greater than 700 cc (43 cu in). Regan signed a memorandum ordering the tariff on April 1, 1983, and signed Presidential Proclamation 5050 on April 15, enacting 97 Stat. 1574 to the United States Code.[3]

Harley-Davidson subsequently rejected offers of assistance from Japanese motorcycle makers.[4] However, the company did offer to drop the request for the tariff in exchange for loan guarantees from the Japanese.[5][6]

References
  1. Farnsworth, Clyde H. (April 2, 1983), "U.S. Raises Tariff for Motorcycles", The New York Times, p. 1
  2. Lemmy (5 March 2018). "Motorcycle tariffs and Harley-Davidson Lessons from the last time". RevZilla.com. RevZilla. Retrieved 21 October 2018. Harley again requested federal assistance in 1982, this time citing Article XIX of the General Agreement on Tariffs and Trade of 1974, better known as 'the escape clause.'
  3. Executive actions by Ronald Reagan:
  4. "Archived copy". Archived from the original on March 8, 2008. Retrieved December 12, 2007.CS1 maint: archived copy as title (link) – 7/83 US Imposes 45% Tariff on Imported Motorcycles
  5. Field, Greg (September 1, 2002). "The Myth of Harley VS. Japan". In Darwin Holmstrom (ed.). The Harley-Davidson Century. St. Paul, MN USA: MotorBooks International. pp. 206–207. ISBN 0-7603-1155-2. Retrieved December 26, 2012. Before the tariff was even implemented, Harley offered to drop its bid if the Japanese would give Harley loan guarantees of about $15 million to fund development of the Nova project.
  6. "Harley talks to Big Four, Looks to Triumph", Cycle World, 23 (1), January 1984, The enactment of the import tariff ... hasn't kept the two sides -- Harley-Davidson and Japan's Big Four manufacturers--from talking to each other... [Harley has] met with representatives of Honda, Yamaha, Suzuki and Kawasaki to discuss possible alternatives to the tariff.
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