Summary
Launch of Can-Am’s electric motorcycles
Can-Am has recently taken a significant step with the official launch of its first production electric motorcycles, marking a long-awaited return in the world of two-wheelers. The Origin and Pulse models, manufactured at the brand’s new plant in Querétaro, Mexico, have started being shipped to dealers and are now accessible to the general public.
Potential threat of price increase
This progress may, however, be hindered by an unforeseen threat. President-elect Donald Trump’s plan to apply a 25% tariff on products imported from Mexico and Canada could significantly increase the prices of these vehicles. If the tariff is implemented, the price of the Origin, currently at €13,700 in the United States, could reach approximately $18,125, not including additional taxes. Similarly, the Pulse, initially more affordable, could see its price climb to €16,500, nearing $20,000 for consumers after adding transportation, documentation, and local tax costs.
Economic impact
This increase comes at a delicate time for the American economy, between high interest rates, stagnating wages, and inflationary pressure. A significant price increase could reduce the appeal of Can-Am’s new electric motorcycles, especially in a market already struggling to convince consumers to adopt expensive electric vehicles.
Diplomatic stakes
The tariffs proposed by Trump are part of a broader policy aiming to impose a 25% tax on all products from Mexico and Canada starting January 20. This measure, according to Trump, aims to protect US economic interests but has already caused diplomatic tensions. Claudia Sheinbaum, president of Mexico, warned that the country would respond with tariffs on American products if the measure comes to fruition. A similar situation occurred during Trump’s previous term, resulting in retaliations from the UK and the European Union that penalized brands like Harley-Davidson.
Future of Can-Am’s electric motorcycles
Can-Am enters a competitive market with two models that underline its commitment to electric mobility and advanced technology. However, such a significant price increase could make these models less competitive, especially in a segment where cost is a decisive factor. The hope now relies on negotiations between the leaders of Mexico, Canada, and the United States. If an agreement is reached, tariffs could be avoided, ensuring Can-Am fair competition in the North American market. Otherwise, the brand’s return to the world of two-wheel motorcycles could be compromised from the start.
