How a 1983 Tariff Changed an Industry - And My Life

Kona Home Team (LUVA LLC) Lance Owens (RB-24133), 2024 Real Estate Expert - Hawaii Island (Kona Home Team (luva llc)) • April 3, 2025

This Isn’t About Politics—It’s About Experience

In the early 1980s, I wasn’t just working on motorcycles—I was racing them. I lived and breathed motorcycles. As a mechanic for Kawasaki and Harley-Davidson dealerships on Oahu and in Las Vegas, I saw both sides of an industry in crisis. Harley was struggling, while Japanese bikes dominated the market and the track.

Then, in 1983, everything changed.


A Tariff That Reshaped an Industry

The U.S. imposed a massive tariff on Japanese motorcycles over 700cc, aimed at saving Harley-Davidson. Almost overnight, racing classes shifted—750cc bikes were downsized to 699cc, and Japanese manufacturers moved more production to the U.S. to avoid the tariffs, creating thousands of American jobs.

At the shop, I watched the impact unfold firsthand. Harley got a second chance, while Kawasaki, Honda, Yamaha, and Suzuki adapted fast. The experience left a lasting impression on me - tariffs, when done right, can reshape industries, protect jobs, and force innovation.


Reagan’s Bold Move: The 1983 Tariff

In April 1983, President Ronald Reagan signed a five-year tariff plan, dramatically increasing the import duty on Japanese motorcycles over 700cc:

  • 1983: 45% 
  • 1984: 35%
  • 1985: 20% 
  • 1986: 15% 
  • 1987: 10% (back to normal levels) 

The goal? Give Harley-Davidson time to recover. But what happened next went beyond just Harley—it changed American manufacturing.


Notice the big white patch on my back, it was required as rookie to wear that - I cut up an old t-shirt and duck taped it to my leathers - lots of riders got to see it from behind - I won the race!


The Unexpected Twist: Thousands of Jobs Created in America

Rather than accept the tariffs, Japanese manufacturers adapted by moving more production to the U.S. to avoid the import tax:

βœ… Honda expanded its Ohio factory, creating thousands of jobs.

βœ… Kawasaki ramped up production in Nebraska.

βœ… Yamaha and Suzuki followed suit.

For the first time, foreign motorcycle brands were being built in the U.S. on a large scale, bringing long-term jobs, technology, and investment to American workers.


Another favorite - 1982 GPZ 550 - I had over 25 motorcycles during my youth


Harley’s Comeback and a Win-Win for all 

ο»Ώ

Meanwhile, Harley-Davidson used this window wisely—improving quality, modernizing production, and reclaiming its reputation. By 1987, Harley was profitable again—and in a bold, unheard-of move, they asked the Reagan administration to lift the tariffs a year early.

This wasn’t just about Harley—it was a blueprint for how strategic tariffs can work. The 1983 motorcycle tariff didn’t just protect one company; it forced innovation, created American jobs, and reshaped an industry.


The Lesson: Tariffs Can Work—If Done Right

Most tariffs drag on too long or cause unintended consequences. But this one? It saved an American icon, forced foreign investment in U.S. manufacturing, and proved that short-term protection can lead to long-term economic strength.

Looking back, I realize just how big of an impact those years had—not just on my career, but on an entire industry. It was a rare case where everyone evolved—and America came out stronger.


Back in the 80's, this was my "production class" Kawasaki 1000 Z1R


Why This Matters Today This story isn’t just history—it’s a lesson for today’s trade debates. If done right, tariffs can protect American industries—but only if they push companies to innovate rather than rely on permanent protection.

Would this strategy work again today? That’s up for debate. But one thing is clear—the motorcycle tariff of 1983 changed American manufacturing forever.

And just like manufacturing, housing and real estate are cornerstones of our economy. When smart policy is paired with local insight and long-term thinking, we can strengthen communities, create jobs, and keep opportunity within reach—for everyone.

πŸ”§πŸοΈ Let’s Talk: What Do You Think? πŸ’¬ Do you think tariffs can still work today? 🏁 Were you working or riding in this era? I’d love to hear your thoughts!


Posted by:


Lance Owens
 RB-24133
808.936.8383
 

LUVA Real Estate | 75-240 Nani Kailua #8, Kailua Kona, HI 96740 
   REALTOR® / BROKER-IN-CHARGE • Residential homes, Condos, Land, Agricultural/ Equestrian/Large Acreage 

Hawaii Association of REALTORS® (HAR) 

    2025 President   2023/24 State RPAC Chair
    2023 HARLA Graduate 

National Association of REALTORS® (NAR) 

    2023-25 Director   2024-25 RPAC Participation Council   Safety Advisory Committee   Region 13 Leadership

NAR Designations
      
AWHD (At Home With Diversity) | PSA ( Pricing Strategy Advisor) 
West Hawaii Association of REALTORS® (WHAR)

   2023 REALTOR® of the Year   2018/2022 Preside


By Kona Home Team (LUVA LLC) Lance Owens (RB-24133), 2024 Real Estate Expert - Hawaii Island (Kona Home Team (luva llc)) April 24, 2025
Today’s Inman News headline reads:“Existing-home sales fall to slowest pace since 2009 amid rising costs.”That may be true nationally—but not here in North Kona.While the mainland sees pullbacks, our local data paints a different picture. From January through March 2025, both home and condo sales in North Kona are up—eclipsing 2024, 2009, and even 2008 numbers.πŸ“Š North Kona YTD Sales (Jan 1–Mar 31): 2008: 69 Homes | 47 Condos 2009: 42 Homes | 33 Condos 2024: 104 Homes | 67 Condos 2025: 107 Homes | 82 Condos This isn’t just a rebound—it’s sustained confidence. Buyers are still buying. Sellers are still selling. And the market is still moving.It’s a powerful reminder that real estate is local. National headlines don’t always reflect what’s happening in our neighborhoods, our communities, or right here on the Big Island.Want the real story—not the national spin? Talk to someone who’s lived and worked it.With 21 years of boots-on-the-ground experience in the North Kona market, I’ve seen every shift, surge, and slowdown (even volcano related) . Let’s talk about what’s really happening—and how it affects your next move.Aloha,Lance Owens RB-24133  808.936.8383 LUVA Real Estate | 75-240 Nani Kailua #8, Kailua Kona, HI 96740        REALTOR® / BROKER-IN-CHARGE • Residential homes, Condos, Land, Agricultural/ Equestrian/Large Acreage Hawaii Association of REALTORS® (HAR)      2025 President | 2023/24 State RPAC Chair     2023 HARLA Graduate National Association of REALTORS® (NAR)      2023-25 Director | 2024-25 RPAC Participation Council | Safety Advisory Committee | Region 13 Leadership NAR Designations       AWHD (At Home With Diversity) | PSA ( Pricing Strategy Advisor) West Hawaii Association of REALTORS® (WHAR)     2023 REALTOR® of the Year | 2018/2022 Preside
By Kona Home Team (LUVA LLC) Lance Owens (RB-24133), 2024 Real Estate Expert - Hawaii Island (Kona Home Team (luva llc)) April 14, 2025
Mayor Kimo Alameda is holding a final Town Hall meeting: πŸ“… Tuesday, 5:30–7:00 PMπŸ“ Make‘o Pavilion at Old Airport If we want a say in Kona’s future, now is the time. Show up. Share your mana‘o. Let’s make sure the decisions made today reflect the hard lessons — and wasted money — of the past. Mahalo to Our Leaders Mahalo to Mayor Kimo Alameda, Council Member Rebecca Villegas, and 365 Hawaii Island Community Fund for pulling the community together on Saturday.It’s powerful to see leadership and respectful conversation at a time when real listening is rare.With almost all in attendance opposed to the idea, few had other solutions.(Personal note: Kuakini Highway must be widened before any one-way plan moves forward.) Why the Past Matters Today Yesterday, I had the chance to speak and remind our leaders of a history many may not know. We have a new administration, new decision-makers, and 60% more residents since the last time this failed — making it even more critical to learn from the past before repeating it: These timelines were shared with Mayor Kimo Alameda and Council Member Rebecca Villegas - but should be spoken to at the meeting Tuesday 1974 — One-Way Ali‘i Drive AttemptThe County tried making Ali‘i Drive one-way.Public outrage, traffic jams, and confusion killed the plan almost immediately. 1999 — Paid Parking at Coconut GrovePaid parking was introduced, enforced by Diamond Parking.Businesses quickly lost customers.Locals and visitors pushed back hard.Within a year and a half, the system collapsed under pressure without needing government interference. 2004 — Another One-Way PilotDepartment of Public Works launched another one-way test when Kona had about 28,500 residents.Goal: Improve pedestrian safety and deliveries.Result: Massive congestion on Kuakini Highway and side streets.Public backlash ended the project early — after spending significant taxpayer money setting it up.(Personal note: I was a prisoner in my own office. It took over an hour just to get out and back.) 2013 — Expert Warning IgnoredA new administration revisited the idea, population now at 37,800Warren Lee, Director of Public Works — a licensed Professional Engineer (P.E.) and respected leader of major infrastructure projects across Hawai‘i — publicly warned:"Any one-way proposal must be contingent on the completion of alternate routes to absorb displaced traffic.Public health, safety, and overall traffic flow must improve — not worsen — before any change is made." 2023 — Paid Parking ReturnsPaid parking was reintroduced in Kailua Village.Same pattern: fewer visitors, frustrated residents, half-empty parking lots. 2025 — Déjà Vu?A new one-way proposal is on the table.Kona’s population has jumped 60% since the last failure — from about 28,000 to 45,000 people today. The Pattern is Crystal Clear Every time these changes were rushed without real planning, they failed — wasting time, wasting money, and hurting local businesses. πŸ“£ Show Up Tomorrow We cannot afford another repeat. Show up tomorrow. We owe it to our community — and our tax dollars — to learn from the past and plan responsibly.πŸ—“ Final Town HallπŸ•  Tuesday, 5:30–7:00 PMπŸ“ Make‘o Pavilion at Old Airport ο»Ώ
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