HARLEY-DAVIDSON is facing yet another challenge as the European Union is set to impose $28 billion worth of tariffs on U.S. goods, including motorcycles, starting April 1.
The iconic brand is likely to see prices rise in Europe, adding to its already significant struggles.
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These tariffs come as part of an escalating trade war between the U.S. and the EU, and Harley-Davidson is among the hardest-hit brands.
Recently, Harley-Davidson reported a £250m loss in revenue, attributed to industry-wide challenges and a decline in sales.
CEO Jochen Zeitz acknowledged that sales have been “significantly impacted,'” with the brand facing an aging customer base, high prices, and fierce competition, especially from younger riders who prefer lighter, more affordable bikes.
The new round of tariffs comes as the EU seeks to match the 25 per cent tariffs imposed by the U.S. on steel and aluminium, which are set to hit a wide range of goods.
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European consumers are expected to feel the brunt of the increases, with Harley-Davidson being one of the most iconic American brands to face a significant price rise.
For the motorcycle maker, this could mean higher prices on its models, affecting its sales across the continent.
The tariffs are part of a broader strategy by the EU to retaliate against the U.S., which has seen trade disputes with the bloc intensify under President Donald Trump’s second term.
The EU has been vocal in its criticisms of the U.S. tariffs, particularly the steel and aluminum tariffs that are seen as a barrier to fair trade.
European Commission President Ursula von der Leyen voiced her regret over the new measures, noting, “Tariffs are taxes. They are bad for business, and worse for consumers.”
She warned of the disruptions to supply chains, economic uncertainty, and the risk of job losses on both sides of the Atlantic.
The EU’s latest tariffs are part of a larger package of retaliatory measures, with the goal of matching the U.S. tariffs on European goods.
While the U.S. has yet to exempt any products from these new tariffs, EU leaders are leaving the door open for negotiations before the tariffs are implemented.
However, with the April 1 deadline looming, it remains to be seen whether a resolution will be reached in time to avoid price hikes for iconic American products like Harley-Davidson motorcycles.
In the meantime, Harley-Davidson and other American companies will be forced to navigate this new wave of tariffs, which could significantly affect their pricing and competitiveness in the European market.
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