Can-Am recently celebrated an important milestone: the official launch of its first production electric motorcycles, a long-awaited return to the two-wheeled world. The Origin and Pulse models, manufactured at the brand’s new facility in Querétaro, Mexico, have started shipping to dealers, finally becoming accessible to the public.
However, this return might be threatened by an unexpected obstacle. President-elect Donald Trump’s proposal to apply a 25% tariff on products imported from Mexico and Canada could significantly raise these vehicles’ prices.
Potential cost increase
If the tariff is implemented, the impact on prices will be noticeable. Currently, the Origin has a base price of €13,700 (approximately, in the US). With the tariff, this value could rise to around $18,125, excluding additional taxes and fees. The Pulse, slightly more affordable, could reach €16,500 (approximately) under the same conditions. These increases could push the final price above $20,000 for consumers, considering transportation costs, documentation, and local taxes.
Economic impact
This price increase comes at a delicate time for the American economy, with high interest rates, wage stagnation, and inflationary pressure. A significant price increase could limit the appeal of Can-Am’s new electric motorcycles, especially in a market already facing challenges in convincing consumers to adopt high-cost electric vehicles.
A diplomatic issue
The proposed tariffs are part of a broader policy announced by Trump, which aims to impose 25% taxes on all products imported from Mexico and Canada starting January 20. The measure, according to Trump, will be one of his first executive actions in office and intends to ‘protect the United States’ economic interests’.
However, the idea has generated diplomatic tensions. Claudia Sheinbaum, Mexico’s president, has already warned that the country will retaliate with tariffs on American products if the measure moves forward. Something similar happened during Trump’s last term, with the United Kingdom and European Union imposing taxes that hurt brands like Harley-Davidson.
The future of Can-Am’s electric motorcycles
Can-Am enters a competitive market with two models that highlight its commitment to electric mobility and advanced technology. However, such a significant price increase could make the models less competitive, especially in a segment where cost is a decisive factor.
Hope now rests on negotiations between the leaders of Mexico, Canada, and the United States. If an agreement is reached, tariffs might be avoided, ensuring that Can-Am can compete fairly in the North American market. Otherwise, the brand’s return to the two-wheeled motorcycle world might face challenges right from the start.