Motorcycle specialists have cautioned that Donald Trump‘s intensifying trade battle could jeopardize the legendary American brand Harley-Davidson.
The president has announced plans for a series of tariffs set to unfold on Wednesday, prompting trade partners to promise retaliation.
European Union officials are reportedly contemplating imposing 50 percent tariffs on American products including Jack Daniel’s whiskey, Harley-Davidson motorcycles, and Levi’s jeans.
Industry consultant Michael Uhlarik is warning that elevated taxes could drive prices up and potentially inflict irreversible harm to the company in Europe.
“Even a minor increase of 10 to 20 percent in costs, combined with a general disdain for American brands, could prove fatal,” he told The Wall Street Journal.
The starting price for Harley’s Road Glide, a touring model, is $28,000 in the U.S. However, with the addition of the country’s 25 percent value-added tax and a 150 percent luxury tax, it costs around $77,000.
The new EU tariff proposal could inflate the Road Glide’s price to $124,000, according to the company.
Harley’s Chief Financial Officer, Jonathan Root, addressed Congress on Tuesday, highlighting that their products are subjected to unfair trading practices in various markets, and called for reciprocal duties to be applied to their foreign competitors exporting motorcycles to the U.S.
Motorcycle experts warned that Donald Trump’s escalating trade war could destroy iconic American brand Harley-Davidson
Furious bikers turned their back on the iconic motorcycle brand, blaming CEO Jochen Zeitz’s (pictured) support for ‘woke policies
“Competitor brands should not benefit from low-cost manufacturing and favorable import duties when entering the U.S. market,” Root stated.
The legendary American brand faced significant backlash last year after activists brought attention to its diversity, equity, and inclusion (DEI) initiatives.
Outraged motorcyclists distanced themselves from the iconic motorcycle maker, criticizing CEO Jochen Zeitz for his endorsement of stringent policies surrounding trans rights for children, critical race theory, climate change, and DEI.
This backlash compelled the company to retract its stance in August, stating they were disheartened by the social media negativity, which they claimed was “designed to divide the Harley-Davidson community.”
They added: “We have not maintained a DEI function since April 2024, and we do not currently have any DEI functions in place.”
“We do not impose hiring quotas and have eliminated diversity spending goals for suppliers.”
The company asserted they would reevaluate all their sponsorships and affiliations with external organizations.
Their statement indicated they would implement a process to review all sponsorships internally and suggested they might drop some of them.
Motorcycle-industry consultant Michael Uhlarik warned the high tax could cause prices to soar and cause irreparable damage to the company in Europe
The proposed new EU tariff would take the Road Glide price, which costs $28,000 in the U.S., to $124,000 in Europe, the company said
They also suggested potentially withdrawing from certain sponsorships, which could encompass LGBTQ+ Pride events.
The company stated they would concentrate on driving the sport of motorcycling forward.
Additionally, they announced they would cease their association with the Human Rights Campaign, a prominent LGBTQ+ advocacy organization.
Their statement concluded: “We remain dedicated to considering the voices of all members within our community.”
