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Harley-Davidson CEO Resigns Amid Concerns Over Motorcycle Pricing and Brand’s Uncertain Future

THE CEO OF HARLEY-DAVIDSON has resigned as the motorcycle manufacturer braces for upcoming tariffs affecting the automotive sector.

In light of these industry shifts, company leaders have indicated that they plan to hike the prices of their motorcycles accordingly.


Harley-Davidson CEO Resigns Amid Concerns Over Motorcycle Pricing and Brand’s Uncertain Future

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The CEO of Harley-Davidson announced that he will step down on Tuesday
Credit: AFP

Jochen Zeitz, Harley-Davidson CEO, in an interview.

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Harley-Davidson CEO Jochen Zeitz said he will continue to work until the position is filled
Credit: Getty

Harley-Davidson motorcycles in a Berlin showroom.

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With the proposed tariffs on the auto industry, Harley bikes could cost upwards of $100,000
Credit: Getty

The motorcycle manufacturer is actively searching for a new CEO, as reported by The Wall Street Journal.

Jochen Zeitz has held the CEO position for five years and announced his retirement plans on Tuesday.

While Zeitz succeeded in boosting company profits, the popularity of Harley bikes has continued to wane.

Harley-Davidson confirmed that Zeitz will remain as CEO until a replacement is appointed, in line with The Wall Street Journal’s report.

This news follows the motorcycle company’s declaration that it would implement price increases for its products.

Senior executives told a Congressional subcommittee that Harley-Davidson is facing “devastating” and “indefensible” tariffs from the European Union.

The tariffs will affect numerous American-made motorcycles, including those from Harley-Davidson, as they prepare for this significant shift.

American-made bikes sold in Europe could incur a massive 56% tariff.

If these tariffs are enacted, prices of Harley-Davidson motorcycles could potentially soar to six figures, according to The Wall Street Journal.

Jonathan Root, the CFO of Harley, noted that the tariffs would have a significant financial impact on the company’s products.

Harley-Davidson exec insists bikes will cost $124,000 under ‘devastating’ industry change as makes ‘simple ask’

“My request today is straightforward: fairness,” he stated to the subcommittee.

“It is evident that Harley-Davidson is being unfairly targeted and discriminated against by the EU and Canada.”

Root emphasized that the proposed tariffs would make it nearly impossible to sell their motorcycles.

The price of a Harley-Davidson Road Glide sold in Denmark could escalate to $124,000, a significant increase from its initial $28,000 price point in the US.

Harley-Davidson closures in 2024

There are more than 650 Harley-Davidson dealerships across the United States.

However, several establishments have shut their doors for a variety of reasons this year, often with little explanation.

Here’s a list of some Harley-Davidson locations that have closed in 2024 and their reasons:

A San Francisco outlet shut down in June 2024 after 110 years due to “chaos” caused by new management.

Miracle City Harley-Davidson in Titusville, Florida, closed in September 2024 with no explanation provided.

Harley-Davidson’s historic location in New York City closed its doors on September 28, 2024, with the owner citing economic challenges.

Reiman’s Harley-Davidson dealership in Kewanee, Illinois, closed in October 2024 after the owners sold the business to the Walter Brothers Harley Davidson dealership in Peoria, Illinois.

Another Illinois dealership shut down in November 2024.

Additionally, the dealership in West Bend, Wisconsin, is temporarily closing for the season from November 2 until April 1, 2024.

In 2025, Hideout Harley-Davidson in Missouri indicated it would close at the end of March.

He also mentioned that the company incurred a significant loss in 2018 when it absorbed a $166 million cost.

Root emphasized that the company chose to bear the cost of the tariffs rather than passing them onto customers.

Harley-Davidson already obtains the majority of its auto parts from domestic suppliers.

The company employs 4,500 workers in the US, out of a total of 5,500 employees.

As Trump’s tariffs loom over the auto industry, many consumers are concerned about affording new vehicles.

Automakers are scrambling to adjust to these changes, with some companies attempting to increase domestic manufacturing of their models.

Harley-Davidson has yet to respond to The U.S. Sun’s inquiry for comment.

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Harley Davidson News

Victorian Man Sentenced for $2.4 Million Fraudulent GST Refund Scheme

A man from Victoria who accumulated $2.4 million through fraudulent GST refunds has been sentenced to over four years in prison after spending the money on luxurious living and a Harley-Davidson motorcycle.

This month, the County Court of Victoria sentenced Kristopher Andree-Jansz to four years and seven months of imprisonment, with a non-parole period set at two years and seven months for his role in the GST fraud scheme.

The Australian Taxation Office (ATO) initiated the investigation following an audit of GST refunds Andree-Jansz submitted from March 2021 to February 2022.

After registering for an ABN and portraying himself as a sole trader, he submitted over 30 Business Activity Statements (BAS) falsely claiming his plumbing business had made purchases totaling $30 million.

The audit revealed that Andree-Jansz had received $2.4 million in improper GST refunds and attempted to claim an additional $300,000.

The ATO found no evidence of any business activities “consistent with operating a plumbing business.”

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According to the tax office, Andree-Jansz misused the GST funds for “various lifestyle items, luxurious accommodations, and a Harley Davidson motorcycle.”

The ATO forwarded the case to the Office of the Director of Public Prosecutions, which took on the prosecution.

He faced 24 charges for obtaining a financial advantage through deception, and an additional three counts for attempting to dishonestly acquire a financial advantage.

In addition to his prison sentence, Andree-Jansz was ordered to repay $2,402,258.

“This debt is unavoidable; the individual will now have a financial obligation and interest will continue to accrue,” stated the ATO in a public announcement.

“Any refunds will be immediately deducted to offset the debt.”

This sentencing marks the latest significant outcome from Operation Protego, a task force led by the ATO to combat GST fraud.

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Article ID: 272703

This fraud scheme—exploited on social media platforms like TikTok—resulted in at least $2 billion being drained from public funds.

The tax office successfully thwarted an additional $2.7 billion in suspected GST fraud.

As of February 28, the ATO reported arresting 108 individuals linked to Operation Protego, with 98 convictions secured.

Among those convicted is a woman from Victoria who was sentenced last year to four years in prison for fraudulently claiming nearly $600,000 in GST refunds.

In response to the widespread fraud, the ATO promised last February to implement internal reforms as recommended by the Australian National Audit Office.

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EU to unveil tariff countermeasures on Wednesday | Yle News

Finnish Minister for Foreign Trade and Development, Ville Tavio (Finns), emphasized the necessity of EU unity regarding the matter.

EU to unveil tariff countermeasures on Wednesday | Yle News

Earlier reports indicated that the tariff counteractions would focus on US products and brands, including American whiskey, Levi’s clothing, and Harley Davidson motorcycles.
Image: Esa Syväkuru / Yle, Linus Hoffman / Yle, Henrietta Hassinen / Yle

The EU is set to unveil its initial countermeasures against tariffs proposed by the United States, as disclosed by Finnish Minister for Foreign Trade and Development Ville Tavio (Finns).

Tavio addressed reporters at a press conference after a gathering of EU trade ministers in Luxembourg on Monday afternoon.

Recently, US President Donald Trump revealed expansive tariff proposals targeting goods and services from the EU and numerous global trading partners. The 10-percent “baseline” tariff on imports from various countries initiated over the weekend while EU nations now face a 20-percent levy.

This shift has caused a significant downturn in global markets.

The European Commission is currently preparing to present the suggested countermeasures to EU member states. Initial reports hinted that these tariff countermeasures would target US products and brands, including American whiskey, Levi’s apparel, and Harley Davidson motorcycles.

Tavio mentioned that the counteractions should not disproportionately affect any member state. He also stated that products essential for security and energy production would be exempt from any potential counter-tariffs.

He reiterated the importance of EU solidarity on this issue, insisting that no state would benefit from straying from the collective EU stance.

Prior to Monday’s meeting of EU ministers, Tavio remarked in a government release that the EU would implement robust and appropriate countermeasures when necessary to safeguard consumers and businesses across the bloc.

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Harley Davidson News

Motorcycle Accident Claims Life in Lauderdale County | News

Authorities have reported that a man from Lexington lost his life in a motorcycle accident in Lauderdale County on Saturday.

The incident occurred at approximately 6 p.m. on Saturday on County Road 483, close to County Road 480, which is situated around four miles southwest of Lexington.

According to state troopers, Danny W. Robinson was fatally injured when his 1990 Harley Davidson FXSTC veered off the road and collided with a fence. He was pronounced dead at the scene.

The investigation into the accident is still ongoing, as stated by the state troopers.







FATAL CRASH WEB IMAGE

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Harley Davidson News

West Tennessee Community Comes Together to Support Selmer Disaster Relief | Local News

“Residing in the Volunteer State, our community members are eager to lend a hand to their fellow neighbors in times of need,” stated Beth Koffman, COO of The Community Foundation of West Tennessee.

This week’s storms that devastated Selmer have motivated the West Tennessee community to unite.

“We have many volunteers from our church here today, alongside others from nearby congregations, including those traveling from Boonville, Mississippi, to assist us. Freed-Hardeman University has also sent volunteers down,” remarked John Foote, who is coordinating the volunteer activities at Eastside Church of Christ in Selmer.







Volunteers help move downed trees in Selmer

Students from Freed-Hardeman University and other volunteers came together to help remove fallen trees in Selmer.






The Community Foundation of West Tennessee has initiated their Disaster Relief fund, which was established in 1999 following a storm in Madison County. Koffman shared with 39 News the community’s generous donations.

“Upon announcing that the fund was reactivated, donations began pouring in, including some overnight. In just the last 24 hours, we’ve received over $3,500 for the fund,” she noted.

Jackson’s Harley Davidson dealership shared news on Facebook encouraging community contributions. Morgan Staton, a Motorcycle Sales Specialist, mentioned a tremendous response from the community.

“Currently, we are requesting no further clothing donations as we have more than enough. We need cases of water, non-perishable food items, snacks, hygiene products, baby supplies, and perhaps some blankets,” Staton added.







Harley Davidson Donations

Due to overwhelming community support for donations, Harley Davidson has requested no further clothing contributions.






On the ground in Selmer, The Eastside Church of Christ is collaborating with the Churches of Christ Disaster Relief Effort Inc. and local volunteers. John Foote, an Elder at Eastside, explained the contents of the food boxes being distributed.

“These boxes include beans, canned goods, and similar items. Each box is carefully designed based on years of experience to feed a family of four for five days,” Foote elaborated.

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Harley Davidson News

How Should the EU Address Trump’s Tariffs? | National

The European Union has stated that “everything is on the table” as it prepares its response—potentially targeting major US tech companies and increasing taxes on American products—if negotiations with Washington do not succeed regarding President Donald Trump’s broad new tariffs.

The European Commission, which oversees the EU’s trade policy, has refrained from disclosing specific details about what its response to Trump’s 20 percent tariffs, effective April 9, might entail.

However, suggestions from France, Germany, and Austria have pointed towards focusing on the largest digital firms, such as Google and Meta, the parent company of Facebook.

Here are the options being discussed by the 27-member European Union:

– Tariffs –

Following Trump’s imposition of a 25 percent tariff on steel and aluminum imports in March, the EU adopted an “eye for an eye” strategy.

As his additional tariffs would impact around $28 billion of EU exports, Brussels decided to target equivalent US goods from mid-April, which include products like Harley Davidson motorcycles and agricultural items such as soybeans and meat.

Now, with Trump’s newly announced 20 percent tariffs, discussions within the EU regarding further retaliatory measures have been reignited.

“We will respond in ways that impact the United States,” indicated a senior EU official.

Officials have noted that the EU aims to focus on goods from key politically significant US states, such as soybeans from Louisiana, the district of US Speaker Mike Johnson.

“We appreciate soybeans, but we can source them from Brazil,” the official explained.

“We enjoy Harley-Davidsons, but we’re also fond of MotoGuzzi. Or we can choose Yamaha. Thus, there are alternatives available which means we won’t harm ourselves.”

– Tech taxes? –

While the Commission has been discreet about the potential targeting of US Big Tech, France has boldly stated that the EU’s targets may include American technology giants.

French government spokesperson Sophie Primas suggested that the EU might “attack” online services that currently evade taxation.

Economy Minister Robert Habeck echoed this sentiment, asserting that “everything is up for consideration.”

In 2023, the United States boasted a surplus of 109 billion euros ($120 billion) in services with the European Union.

US firms dominate the financial services sector, including banks and payment systems like Mastercard, along with technology companies such as Amazon, Google, Meta, and Microsoft.

“If they plan to challenge our goods surplus, we will examine the services surplus,” noted an EU official.

Financial services could also be included among the targets, in addition to major tech companies, the official added.

“We are currently deliberating on this, and any decision will be made public as soon as it is finalized,” stated French Finance Minister Eric Lombard on Friday.

“It’s a signal to our American counterparts. However, we are developing a response package that could extend well beyond tariffs,” he told France’s BFMTV/RMC broadcaster.

– Trade tools –

An EU official declined to specify what methods Brussels might employ against the United States, but indicated that the bloc is considering the use of an anti-coercion instrument.

This measure, which was first adopted in 2023 but has never been implemented, punishes any country that uses economic threats to apply pressure on the EU.

Initially designed to counter trade pressure from China, it could now be leveraged against the United States.

With this tool, the Commission can act independently without unanimous support from all EU states.

This would enable the EU to restrict US firms’ access to public procurement contracts in Europe, a suggestion already made by France’s Primas as a potential consequence against Trump.

Officials believe that targeting US firms with EU regulations and taxes would not lead to increased prices for consumers in Europe.

“We are ready to implement strong, significant yet proportionate countermeasures,” stated EU trade chief Maros Sefcovic on Thursday.

Thus far, the EU has maintained a united front against Trump’s tariffs.

“Europe possesses all the necessary tools to weather this storm. We face it together,” remarked EU chief Ursula von der Leyen.

aro-raz/rl

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Harley Davidson News

Are Investors Abandoning U.S. Stocks?

Please note that this podcast episode was recorded on April 1, prior to the latest updates on tariffs. Motley Fool analyst Bill Barker and host Ricky Mulvey talk about:

  • The effect of tariffs on Harley Davidson.
  • Whether the motorcycle manufacturer is a value trap.
  • OpenAI’s recent funding round, which values the hybrid nonprofit at $300 billion.

Subsequently, Motley Fool host Alison Southwick and personal finance expert Robert Brokamp discuss strategies to safeguard your finances during a recession.

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A complete transcript is available below.

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This video was recorded on April 01, 2025

Ricky Mulvey: It was the night before Liberation Day, and the markets were buzzing. Welcome to Motley Fool Money. I’m Ricky Mulvey, joined today by Bill Barker. Bill, how are you planning to celebrate the eve of Liberation Day? Any exciting plans?

Bill Barker: I think I’ll enjoy a regular night’s sleep and wake up ready for the day ahead. Actually, the excitement doesn’t really start until after market close. You have another full day tomorrow to enjoy before discovering the news.

Ricky Mulvey: I’m just bursting with excitement to find out. Many people believe Liberation Day is merely about consumerism and gifts, but there’s a deeper significance. What is the true meaning of Liberation Day? That’s what the markets are eager to learn. The Washington Post reported that a proposal includes a 20% tariff on most imports, but a country-by-country reciprocal approach is also being considered. Ultimately, the plan remains uncertain. Is there a scenario where the markets might react positively to tomorrow’s news?

Bill Barker: Absolutely. If the announcement is that it was all just a joke, the markets would celebrate that. However, short of that, given that 20% is the number currently circulating, if the tariffs announced were significantly lower than that and included assurances that favorable deals were already in place, that this would be temporary and aimed at finalizing trade agreements, then yes, that could be news the markets would welcome. Nonetheless, I do not expect such outcomes.

Ricky Mulvey: I attended public high school, Bill, and sometimes there was a sense in the cafeteria right before a fight. You could feel the tension and hear the gossip, like a showdown might occur. It appears the financial news media is covering Liberation Day in a similar way. Investors may want to brace for a volatile movement either up or down tomorrow. While considering a scenario where markets might embrace the news, what about a scenario where they react negatively and head for the exits?

Bill Barker: If the announcement states there’s a 20% tariff applied universally across the board, and anyone retaliating would face further escalation, that moves us into the worst-case territory. It would be like daring your opponents to react in a logical and rational manner, which could lead to a wider conflict. Now, that would indeed be a concerning scenario. The extent to which we experience such outcomes will be clear in less than 36 hours.

Ricky Mulvey: This is the first time I’ve heard “fussy” and “war” used interchangeably, and I appreciate you introducing that perspective.

Bill Barker: You’re welcome to this narrative.

Ricky Mulvey: Good point. I agree it’s important to keep things light, but sometimes the topics get serious, and humor doesn’t always resonate.

Bill Barker: Often, when discussing trade, the term “war” is mentioned and has almost become a trademarked term. The narrative writes itself.

Ricky Mulvey: In the long run, here’s how some investors are responding. According to a Bank of America survey reported by Bloomberg, fund managers now show a 23% underweight position in US stocks—an alarming drop of 40 percentage points since the last survey. A couple of weeks back, I spoke with Richard Bernstein, head of Richard Bernstein Advisors, about this long-term deglobalization trend. We see many investors shifting from US stocks to international equities to diversify away from American markets. Are you personally following this trend, Bill? Are you considering adding international stocks and ETFs to your investments?

Bill Barker: Yes, I have sustained my international stock holdings percentage and even increased it in light of how US stocks have been valued, which was true before any recent disturbances. They have been trading at historically high levels that imply strong future cash flows. I believe truly above-average growth is already baked into US stock valuations. In contrast, international stocks have presented better pricing because they haven’t fared well relative to US stocks for years. When someone claims they are increasing their international holdings, they might also be trying to take credit for trends that have already occurred. Everyone knows international stocks have outperformed the US significantly this year. If they say, as I just did, that they have been doing that, they are attempting to claim credit for outperforming the market, which may not accurately reflect their position.

Ricky Mulvey: Let’s discuss a company that appears to have little to no growth priced in, front and center in the trade wars (small lowercase ‘tm’). That would be Harley Davidson, known for its manufacturing in the United States and some international sales. A Wall Street Journal article discusses how tariffs are already impacting Harley, referencing the Road Glide, a touring motorcycle model with a starting price of $28,000 in the US, but priced at approximately $77,000 in Denmark due to a 25% value-added tax and a staggering 150% luxury tax. If the new EU tariffs come into play, that price could skyrocket to more than $100,000, amassing a total of $124,000. Harley has certainly found itself in turbulent waters for various reasons, tariffs being a major player. However, how is Harley performing in the international markets? How crucial are Europe and Asia to the company?

Bill Barker: Last year, Harley sold around 94,000 units in the US compared to 151,000 globally. Approximately 60% of their sales come from the US, with some in Canada and others distributed across Asia and Europe. They don’t have much presence in Latin America. Harley remains a significant US brand but has become somewhat of a target due to its strong association with American culture, just like certain whiskey brands; they often end up in the headlines regarding specific tariffs in Europe, which affects their international sales. Given the current tariff levels, I’m surprised Harley is still managing to perform as well as they do globally, particularly in places like Denmark.

Ricky Mulvey: Personally, I’m not interested in motorcycles. No offense to motorcycle enthusiasts; I just prefer my car. I can’t fathom spending over $100,000 on a bike that retails for under $30,000 elsewhere.

Bill Barker: Tariffs serve to protect local brands like BMW and other European manufacturers. Headlines surrounding them illustrate the argument that some tariffs imposed by allies can appear blatantly unfair to specific US companies, and there’s substantial room for negotiation around these points. The question remains whether implementing a 20% tariff across the board is an effective negotiation strategy, and the market may express its sentiments on this tomorrow.

Ricky Mulvey: This has been discussed by CFO Jonathan Root from Harley Davidson when addressing Congress, pointing out that foreign markets pose significant challenges for his company. He noted that motorcycles imported into the US face a maximum tariff of just 2.5%. They’re navigating a very uneven playing field internationally where they thrive domestically. However, could retaliatory tariffs or a trade war selectively benefit a company like Harley Davidson, which could potentially face fewer competitors in the US market and gain negotiating leverage for increased bike sales abroad?

Bill Barker: It’s possible, but I wouldn’t place my bets on it. If Harley strengthens its US position, it currently holds about 37% of the heavyweight motorcycle market domestically and was once a dominant player with a 50% share prior to COVID. They’ve been losing market share to competitors. If tariffs could bolster their domestic strength, it raises the question of whether that could compensate for reductions in their international sales—your guess is as good as mine. To add to the complexity, the increase in steel and aluminum tariffs raises production costs for Harley here. A significant portion of their input costs is already subject to tariffs, which puts pressure on their margins, making it difficult for Harley to simply pass these costs onto consumers while maintaining their profit margins.

Ricky Mulvey: You’re not the only investor who appears pessimistic about HOG, Harley Davidson’s ticker symbol. Its multiples have dropped from about 10 or 12 times trailing cash flow to just three times over the last 12 months, and they reported an operating loss in their latest quarter. Additionally, the market cap has shrunk from over $6 billion just a few years ago to approximately $3 billion today. Beyond tariffs, CEO Johan Zeitz highlighted ongoing cyclical challenges for discretionary products, including the high-interest-rate environment, which is impacting consumer confidence. I’m seeking some contrarian insights here; there are times when investors hunt for those blood-in-the-streets stories, where negative headlines can create the opportunity for long-term investments.

The issue is that the market usually does a decent job of valuing companies, and contrarians can sometimes appear quite unwise in the aftermath. What advice could you provide to someone considering a contrarian approach while observing these trade wars unfold, perhaps pondering investing in a challenging scenario?

Bill Barker: I would advise against viewing Harley as a dumpster fire, even though the market is indeed pricing it as such with a PE ratio around 7-8. This is a company with a storied history and a product that remains relatively relevant. It’s not going to disappear like a company such as Kodak, where you see its product diminishing over time. Even if it’s trading at a low PE, circumstances could worsen significantly. The challenges facing the company right now seem to be more temporary. I can’t predict the future of tariffs, but I don’t foresee their product becoming significantly less appealing to consumers year after year. They have a $1 billion stock buyback authorization in place. If they are purchasing their shares, it would signal that management finds value in the stock.

Ricky Mulvey: That buyback authorization represents about one-third of the company’s overall market value currently. Now, let’s shift our focus to the OpenAI story, which has just completed a $40 billion funding round. Congrats to Sam Altman and his team; this fundraising has now valued the hybrid nonprofit at $300 billion, making it the highest amount raised by a private tech company, led by Softbank with a $30 billion commitment. This company is undeniably one of the hottest globally. If Masa Son from Softbank reached out and said, “Hey, Bill, do you want to contribute to this funding round?” Would you be interested in acquiring shares at a $300 billion valuation?

Bill Barker: The fact that Masa Son is interested at this price wouldn’t be enough for me to act. While he has made some excellent and some dreadful investments, I don’t foresee this being one of the terrible ones. However, whether I would select this over alternatives is a question I wrestle with, as I don’t have insight into their financials against other competitors. For instance, Google is available at 20 times earnings right now with a portfolio that encompasses many similar investments and capabilities. While not purely an AI play, it competes in this space and might offer more interesting insights depending on your investment style. If OpenAI goes public soon, it will be captivating to observe its valuation, but I see a lot of value there, yet it’s hard to quantify.

Ricky Mulvey: What pivot are OpenAI investors counting on? According to CFO Sara Fryer, roughly 75% of OpenAI’s revenue comes from consumer subscriptions, at $20 per month, enabling users to create impressive videos and use enhanced question-asking capabilities. However, it seems investors are not banking on this as a subscription business. What shift are they anticipating with OpenAI?

Bill Barker: There’s a tremendous amount of uncertainty regarding how much revenue will stem from enterprise versus consumer applications. Investors appear eager to embrace the potential infinite value AI could create, believing OpenAI will capture a significant portion of that. However, predicting these outcomes remains uncertain for anyone involved. The enterprise application of AI, including Agentic AI and beyond simple prompts, could be key to achieving the $300 billion valuation.

Ricky Mulvey: Once AI agents can act on our behalf, we might see scenarios where your AI agent discusses podcast arrangements with my AI agent, yet if one of us has a vacation planned that the other is unaware of, complications could arise. We’ll see how this unfolds. Thank you for your time and insights, Bill.

Bill Barker: Thank you for having me.

Jane Perles: Having served as a foreign correspondent for many years, I’ve reported from numerous significant locations, none as crucial to global affairs as China. Yet today, few journalists can bring forth the inside narrative. That’s largely due to the stringent control authorities exercise over the media. I’m Jane Perles, the former Beijing Bureau chief for the New York Times. On “Face Off: the US versus China,” we strive to penetrate these barriers. We discuss topics from Trump and Xi Jinping to AI, TikTok, and Hollywood. Tune in for new episodes of “Face Off,” available wherever you get your podcasts.

Ricky Mulvey: Coming up next, Alison Southwick and Robert Brokamp share some strategies to strengthen your finances against a recession.

Alison Southwick: The risks of recession are increasing. Looming trade wars, rising layoffs, declining consumer confidence, and stock market corrections have understandably left Americans feeling uneasy. Google Trends indicate searches for “recession” are at their highest levels in the past decade. These concerns have surfaced in recent headlines, such as “A recession may be on the horizon, it’s not too late to prepare,” according to USA Today, or “CNBC predicts recession before the end of 2025,” reflecting a generally pessimistic outlook among corporate CFOs. In fact, my go-to indicator is generally pessimistic corporate CFO sentiment. One more example? “Stocks plunge, bonds and gold thrive as tariffs ignite recession fears,” as reported by Reuters. Of course, many facets of the economy are still progressing well. A recession within the next year or two isn’t guaranteed; Goldman Sachs estimates the chances of one occurring in the next 12 months at 35%. While this isn’t a reassuring figure, it’s still under 50%. Ultimately, a recession is inevitable, as we haven’t mastered eliminating boom and bust cycles.

Robert Brokamp: Now, let’s delve into recession history. It’s commonly believed that a recession is defined as two consecutive quarters of declining GDP, but that isn’t the official definition. It certainly indicates a slowdown, but we cannot definitively ascertain when an official recession commences or concludes until the National Bureau of Economic Research provides its determination. The NBER is a private nonprofit entity consisting of over 1,800 economists who ultimately declare when a recession begins and ends. They have tracked recession data dating back to 1854. Since then, the US has faced an average recession every five years. However, we’ve also witnessed more than a decade between two of the last three recessions. On average, recessions last about 17 months, but since 1945, this average has shrunk to just ten months. The last two downturns illustrate extremes; the recession from 2000-2009 lasted 18 months, marking the longest downturn since the Great Depression, while the most recent, triggered by the 2020 pandemic panic, only lasted two months—the briefest recession on record.

Alison Southwick: Recessions can influence many aspects of your finances, but not always in detrimental ways. Here’s a general overview of how a recession typically impacts different areas of the economy and your finances. To start, stocks tend to decline.

Robert Brokamp: Correct. The stock market is regarded as a leading economic indicator, usually dropping several months before an official recession kicks off, and stocks often recover prior to the end of the recession, although not always. Many investors think they can hold onto cash on the side and wait for economic recovery before re-entering the market, yet this strategy may cause them to miss significant gains during market rebounds. According to Truist’s CFO Keith Lerner, the median recession-related decline in the S&P 500 since 1948 has been 24%, while sectors typically holding up well during recessions include consumer staples, utilities, and healthcare.

Alison Southwick: Another common occurrence during a recession is an increase in interest rates.

Robert Brokamp: Indeed. Both the bond market and the Federal Reserve respond to recessions by lowering interest rates. However, if inflation remains high or escalates during an economic downturn—termed stagflation—interest rates might actually rise, as seen during the 1973-74 recession. Interest rates have already begun to taper this year, and although the Federal Reserve maintained rates in their most recent meeting, they indicated potential cuts in the upcoming months. If rates continue to diminish, it could be wise to secure current rates by investing in CDs or bonds. Depending on the eventual rate landscape, a recession may also provide an opportune moment to refinance loans, such as mortgages.

Alison Southwick: Interest rates typically decrease while bond prices increase.

Robert Brokamp: Exactly. Bond prices move inversely to interest rates; if rates decline, bond prices generally rise. There is often a flight to safety during recessions, wherein individuals sell stocks and buy bonds, further boosting bond prices. This trend is already evident, with the Vanguard Total Bond Market ETF having risen 3% year-to-date—though modest, it’s a decent return over three months in the bond market. However, the quality of bonds is crucial; Treasuries usually perform well in a recession, while investment-grade corporate bonds tend to have mixed results. Riskier assets, such as junk bonds, often decline in value alongside stocks during a recession, albeit sometimes not as significantly—around 10-20%. To preserve wealth during downturns, consider FDIC-insured cash and Treasuries, supplemented with diversified bond funds that include government-backed and investment-grade bonds.

Alison Southwick: How do home prices behave? Generally, they hold their value well.

Robert Brokamp: Yes, home prices have only dropped during two of the six recessions since 1980, and even one of those experienced a negligible decline of less than 1%. Research from Mark Holbert at Market Watch indicates that from 1952-2018, home prices grew at a greater rate during bear markets for stocks than in bull markets. Many individuals may be thinking of the 2007-2009 recession, which witnessed declines in both stocks and home prices. However, historically speaking, that was an anomaly. Real estate can serve as a hedge against stock market volatility and inflation. Yet, as the saying goes in real estate, location is everything. For example, during the oil crash of the 1980s, home prices in Texas suffered significantly. As someone residing in the DC suburbs of Northern Virginia, I am particularly curious to see how home prices in this area respond, given the layoffs of federal employees and cancellations of government contracts.

Alison Southwick: Another economic factor that usually worsens during recessions is the unemployment rate.

Robert Brokamp: Historically, the unemployment rate rises by about three percentage points during a recession, but during the 2007-2009 recession, it doubled, skyrocketing from 5% to 10%. Individuals were out of work for an average of six months, which emphasizes the vital importance of having an emergency fund equivalent to around six months of living expenses. The pandemic triggered an unprecedented spike in unemployment, rising from 3.5% to 14.8%. For those far removed from retirement, job loss represents a considerable recessionary risk. While a portfolio decline might be manageable, losing employment can be devastating. This highlights the importance of bolstering your professional value, maintaining your network, and ensuring your skills are current in anticipation of potential job market shifts.

Alison Southwick: If you manage to avoid the job market, you might be concerned about employee benefits. Generally, workplace benefits either plateau or diminish.

Robert Brokamp: Yes, those fortunate enough to retain their positions may still experience cuts to their overall compensation packages during a recession. Raises and bonuses become scarce. Organizations facing difficult times may also reduce salaries and benefits. Future company events may shift from restaurants to office conference rooms, and other perks could be curtailed. For instance, about 10% of companies reduced or eliminated their 401(k) matching contributions during the pandemic, and nearly 20% did so during the Great Recession of 2007.

Alison Southwick: To conclude this litany of negative news, there’s a glimmer of hope: inflation tends to decline during recessions.

Robert Brokamp: If there’s a silver lining to a struggling economy, it’s that the cost of living tends to stagnate or decrease. Consumers typically curtail spending amid a recession, prompting businesses to lower prices to attract customers. If you have the financial means, possessing a job, and some savings, a recession could present a prime opportunity for significant purchases—like a new car or household appliances. However, those of us with memories of the 1970s stagflation remember that prices can rise even in a declining economy, and this concerns me today, especially considering potential tariffs that may spur inflationary pressures.

Alison Southwick: Let’s bring this discussion to a close. What’s the overarching takeaway on recessions?

Robert Brokamp: To prepare your finances for a potential recession, it’s wise to begin with standard yet vital advice: safeguard any funds you may need in the next few years by keeping them in cash or short-term bonds. Additionally, now is an excellent time to review your budget, trimming unnecessary expenses, and reallocating those funds to bolster your emergency fund. Furthermore, it’s essential to demonstrate your value to your employer and customer base, maintaining your professional network while keeping your skills sharp for any potential market changes. For individuals nearing or in retirement, the primary concern is likely your portfolio, as you will soon be drawing on it like your paycheck. This makes asset allocation and diversification even more crucial. Start by building a stable income reserve, ideally enough to cover five years’ worth of income in cash or short-term bonds. It’s also critical to own a diversified array of stocks, ideally at least 25. Some may prefer a larger number, and including index funds is beneficial. Investing in growth-oriented stocks remains possible, but ensure a solid base of dividend-paying consumer staples to mitigate risk associated with putting too much into any single sector.

Alison Southwick: Lastly, let’s not forget that every recession has eventually been followed by an economic recovery. They don’t last forever. Eventually, unemployment will decrease, corporate gatherings will revert to fancy events, and the stock market will reach new highs once more.

Ricky Mulvey: One last note: Although today is April Fool’s Day, I have something sincere to share. My time with The Motley Fool is coming to a close, making today my final episode of Motley Fool Money. As many of you know, Bro and I, with Rick behind the proverbial glass, have been podcasting together for more than ten years. This journey began with the Motley Fool Answers podcast back in 2014. Thanks to Bro, I’ve learned an immense amount about finance, surpassing what many are likely to know. I’m hopeful we’ve made a positive impact over the years, as reflected in the hundreds of postcards we’ve received. Thank you to Bro, Rick, Ricky, and our many dedicated listeners. Farewell, and thank you for all the stocks.

Robert Brokamp: Alison, I’d like to add my own sentiments. Working with you, Rick, and producing this podcast has been one of the highlights—and likely the highlight—of my career. You are intelligent, humorous, hardworking, and have a big heart. And of course, you love Star Wars and Christmas songs. I know I speak for our many listeners when I say thank you profoundly; you will be missed, and we wish you nothing but the best.

Alison Southwick: Thanks, buddy. Rick, are you tearing up?

Ricky Mulvey: I am.

Alison Southwick: You’ll be alright!

Ricky Mulvey: As always, the participants in this program may have stakes in the stocks discussed, and The Motley Fool may have formal recommendations regarding the buying or selling of stocks. Base your investing decisions solely on what you hear here. All personal finance discussions adhere to The Motley Fool’s editorial standards and have not been endorsed by advertisers. The Motley Fool exclusively selects products they would recommend to friends like you. I’m Ricky Mulvey. Thank you for tuning in, and we’ll see you next time.

Suzanne Frey, an executive at Alphabet, is part of The Motley Fool’s board of directors. Alison Southwick holds no positions in the stocks mentioned. Bill Barker has positions in Alphabet. Ricky Mulvey holds no shares in the stocks mentioned. Robert Brokamp has holdings in Vanguard Total Bond Market ETF. The Motley Fool has positions in and recommends Alphabet and Vanguard Total Bond Market ETF. The Motley Fool also recommends Bayerische Motoren Werke Aktiengesellschaft. The Motley Fool maintains a disclosure policy.

Are Investors Abandoning U.S. Stocks?

Categories
Harley Davidson News

South-Dade Spotlight: Host Richard Candia Welcomes Craig Garrett of Peterson’s Harley Davidson South

Join Host Richard Candia as he features Craig Garrett, the General Manager of Peterson’s Harley Davidson South, on the South-Dade Shoutout.

Discover more about Peterson’s Harley Davidson South by visiting: PetersonsHarley.com

For additional details on South Dade Shoutout, check out: SouthdadeChamber.org

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South-Dade Spotlight: Host Richard Candia Welcomes Craig Garrett of Peterson’s Harley Davidson South


Categories
Harley Davidson News

Jeans, Whiskey, and Cricket Balls: UK Ministers Compile Extensive 400-Page List of US Products Facing Potential Tariffs in Response to Trump.

UK officials have compiled an extensive 417-page document detailing US imports that may face tariffs as a response to Trump’s White House onslaught against global trade.

Popular items such as Levi’s jeans, Jack Daniel’s whiskey, and Harley Davidson motorcycles feature prominently in this extensive list.

These products were already subject to tariffs during the trade wars of Mr. Trump’s initial term in office.

Additionally, the exhaustive list encompasses a variety of goods, from livestock and meats like chicken wings to more unusual items including rollercoasters, cricket balls, live bees, and mannequins.

In a surprising twist that may displease the golf-loving president, the compilation includes golf clubs and balls produced in the USA.

This document was unveiled during a four-week consultation period aimed at determining the UK’s response to Trump’s tariff-related rhetoric.

Under Trump’s ‘Make America Wealthy Again’ strategy, the UK has already faced a general 10 percent tariff on its exports to the US, leading to a decline in stock markets globally.

Sir Keir Starmer and Business Secretary Jonathan Reynolds are currently working to negotiate a trade agreement that would eliminate these tariffs.

However, they have established a deadline of May 1, after which the UK may take action.

Jeans, Whiskey, and Cricket Balls: UK Ministers Compile Extensive 400-Page List of US Products Facing Potential Tariffs in Response to Trump.

Consumer favourites like Levi’s jeans, Jack Daniel’s whiskey, and Harley Davidson motorcycles are all in the astonishingly lengthy document.

But the comprehensive list also covers items from livestock and raw meat like chicken wings to rollercoasters and cricket balls.

The comprehensive list also encompasses items from livestock and raw meats such as chicken wings to rollercoasters and cricket balls.

The list was released as part of the government's four-week consultation on how to respond to Trump's tariff tirade last night.

The list was released as part of the government’s four-week consultation on how to respond to Trump’s tariff tirade last night.

The consultation stated: ‘We want to hear your thoughts on the potential impacts of any future UK tariffs on US goods, in response to recent tariff announcements made by the US government.’

‘The feedback collected will assist the Government in evaluating the implications of any UK tariff measures that could be implemented.’

Business Secretary Jonathan Reynolds informed MPs that businesses will have the opportunity to share their views on how they will be affected by any UK actions aimed at countering the US president’s global trade policies.

The Prime Minister has acknowledged that the 10 percent import tariff would have negative economic repercussions for the UK.

Officials are committed to continuing negotiations for a trade agreement with the US, while Sir Keir Starmer emphasized that ‘no options are off the table’ regarding the response.

During a Commons address on Thursday, Mr. Reynolds remarked: ‘We believe the best path to economic stability for the workforce is through a negotiated agreement with the US that leverages our shared strengths.’

‘Nonetheless, we reserve the right to take any actions deemed necessary if a deal is not reached.’

In a move that may horrify the golf-loving president, the list includes clubs and balls made in the USA.

In a move that may displease the golf-loving president, the list includes clubs and balls made in the USA.

‘To ensure that the UK retains every option available in the future, I am formally launching a request for input regarding the ramifications for British businesses of potential retaliatory measures.

‘This is a necessary step for maintaining all options on the table.

‘Over the next four weeks until May 1, 2025, we will seek the opinions of UK stakeholders on products that could possibly be included in any UK tariff reaction.

‘This effort will also allow businesses to express their views and influence the planning of any potential UK actions.

‘If we reach a point where we can negotiate an economic agreement with the US that ends the tariffs on our industries, this request for input will be suspended, and any resultant measures will be revoked.’

Mr. Reynolds added: ‘Further details regarding the request for input will be available on gov.uk later today, along with an indicative list of products that the Government considers most appropriate for potential inclusion.’

On Wednesday night, the US president announced tariffs affecting countries worldwide, with the UK’s 10 percent rate classified as the lowest ‘baseline’ rate, though the Prime Minister acknowledged that British exporters would suffer from this charge.

When addressing senior executives from major UK companies at Downing Street, Sir Keir stated: ‘Clearly, the decisions made by the US will have economic consequences both here and internationally.’

He emphasized that ‘no one benefits from a trade war’ and reaffirmed that the UK maintains a ‘fair and balanced trade relationship with the US.’

Negotiations for an ‘economic prosperity deal’ expected to alleviate the impact of the tariffs will proceed, as Sir Keir promised to ‘fight for the best deal for Britain.’

However, he stated he would ‘only pursue a deal that serves the national interest and is the right decision for the safety of working individuals.’

The Government expressed some relief that the 10 percent rate imposed on the UK is lower than those on other countries.

The EU faces tariffs of 20 percent, while Japan’s rate stands at 24 percent.

In 2023, the UK exported £60.4 billion worth of goods to the US, representing approximately 15 percent of all goods exports.

While the 10 percent blanket tariff will take effect on Saturday, the car sector has already been afflicted by a 25 percent import duty that commenced early Thursday morning.

The FTSE 100 Index experienced a sharp decline upon opening on Thursday, dropping 122.4 points or 1.4 percent in the initial minutes of trading.

Mr. Trump characterized the tariffs as ‘reciprocal’ responses to levies imposed by other countries, though the rationale for the specific 10 percent figure for the UK remains unclear.

The president also cited ‘exorbitant’ VAT rates as a barrier for US businesses, even though this tax affects all purchases in the UK regardless of origin.

Categories
Harley Davidson News

Harley-Davidson Executive Claims Bikes Will Be Priced at $124,000 Amidst ‘Devastating’ Industry Shift with a ‘Simple Request’

HARLEY-Davidson may soon increase the prices of its motorcycles as the industry undergoes significant changes.

A worsening trade dispute and subsequent tariffs enforced by the European Union on American-manufactured motorcycles, including those from Harley-Davidson, might prompt the well-known brand to shift its production operations.


Harley-Davidson Executive Claims Bikes Will Be Priced at 4,000 Amidst ‘Devastating’ Industry Shift with a ‘Simple Request’

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Harley-Davidson is preparing for substantial transformations within the industry due to significant tariffs on their motorcycles.
Credit: Reuters

Mr. Root testifying at a hearing.

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Jonathan Root warns of a disruptive industry shift and asserts that the historic American brand is being “targeted.”
Credit: YouTube/WaysandMeansCommittee

As reported by Biz Journals, a leading Harley executive recently informed a Congressional subcommittee that the firm is at risk of facing a “devastating” and “indefensible” 56% tariff on American-made motorcycles sold in Europe.

Consequently, the company has requested Congress to negotiate fair trade agreements with the European Union, Canada, and Asian nations.

However, earlier this month, the EU stated that in retaliation to President Donald Trump’s administration imposing a 25% tariff on all steel and aluminum imports, it would increase tariffs on American products—including motorbikes, boats, and bourbon.

Jonathan Root, the firm’s chief financial officer and president of commercial operations, indicated that this situation would lead to a 56% tariff on American-manufactured Harleys sold in the EU.

Root addressed the subcommittee, stating: “My request today is straightforward—fairness.”

“It is evident that Harley-Davidson is being unjustly discriminated against and politically targeted by the EU and Canada.

Root contends that these tariffs are unjust, discriminatory, and driven by political motivations, highlighting that Harley-Davidson has already incurred significant costs from a previous 2018 tariff amounting to around $166 million.

He mentioned that the company managed this impact without passing the costs onto consumers.

“We are not seeking protectionism, merely fairness,” he emphasized.

“A 56% tariff is indefensible and will hinder our capacity to sell motorcycles in Europe.”

Harley-Davidson’s Accessory Mode

Root pointed out how other foreign markets impose luxury taxes reaching up to 150% and additional non-tariff barriers, citing Denmark as an example, where a 25% value-added tax and a 150% luxury tax are applied.

If any supplementary EU retaliatory tariff is applied, the price of a Harley-Davidson Road Glide sold in Denmark could soar to $124,000, significantly higher than the $28,000 starting price in the U.S.

This situation arises as Harley registered 25,860 new motorcycle registrations in Europe in 2024, compared to 94,383 in the U.S.

The figures encompass motorcycles sold in Austria, Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden, Switzerland, and the United Kingdom according to the latest Form 10-K annual report from the company.

Root also highlighted that Harley sources 70 to 80% of its parts from U.S. suppliers and provides jobs for 4,500 American workers out of a total workforce of 5,500.

He reinforced the company’s commitment to manufacturing in the U.S. and urged for a level playing field in international trade.

Harley-Davidson Closures in 2024

There are over 650 Harley-Davidson dealerships throughout America.

Nonetheless, numerous stores have closed down for various reasons in 2024—sometimes without even providing an explanation.

The following is a list of some Harley-Davidson locations that have closed this year along with the reasons for their closure:

A location in San Francisco shut down in June 2024 after 110 years, citing “chaos” resulting from new management.

Miracle City Harley-Davidson in Titusville, Florida, closed its doors in September 2024 with no explanation given.

Harley-Davidson’s historical location in New York City shut down on September 28, 2024, with the owner citing economic challenges.

Reiman’s Harley-Davidson dealership in Kewanee, Illinois, ceased operations in October 2024 after the owners sold the business to Walter Brothers Harley Davidson in Peoria, Illinois.

Another Illinois dealership also closed in November 2024.

Moreover, the dealership in West Bend, Wisconsin, is temporarily closing for the season from November 2 until April 1, 2024.

As of 2025, Hideout Harley-Davidson in Missouri announced it would close at the end of March.