The chief financial officer and president of commercial operations at HARLEY-DAVIDSON Inc. has criticized the European Union for its “indefensible” taxation on the company’s products.
Jonathan Root addressed the US House of Representatives on Tuesday, detailing the extreme “retaliatory” taxes imposed by the EU on the company.
3
Credit: Harley Davidson
3
Credit: Getty
3
Credit: Getty
The American motorcycle brand generates most of its revenue in the United States, with over 90,000 motorcycles sold last year.
However, Root emphasized that increasing EU taxes significantly restrict its international market opportunities.
“The US has historically been, and continues to be, the primary market for heavyweight motorcycles,” Root began in his prepared statement.
“The US is home to our largest workforce, our main production site, and accounts for the majority of Harley-Davidson’s global sales.”
READ MORE ON HARLEY-DAVIDSON
“Nevertheless, we face tremendous pressures both domestically and internationally due to uneven and unfair trade practices.”
Root’s address comes just a week ahead of the European Union’s decision to impose $28 billion in tariffs on US goods, including motorcycles.
These tariffs stem from an escalating trade war with the US, placing the iconic American motorcycle brand directly in its path.
The conflict began when Trump announced a 25 percent tariff on all steel and aluminium imports to the US.
“We are committed to a pragmatic approach and are actively negotiating a broader economic agreement with the US to eliminate additional tariffs and support UK businesses and our economy,” stated UK Business Secretary Jonathon Reynolds, referring to the new tariff as “disappointing.”
Root pointed out the trade imbalance: “The EU has prepared a staggering total tariff of 56% for Harley-Davidson motorcycles. This comprises a retaliatory tariff of 50 percentage points plus a base import duty of six percent, regardless of the manufacturing location.”
“This stands in stark contrast to the 0 to 2.4% import duty that international motorcycle brands can leverage when entering the US market.”
“From 2018 through 2021, Harley-Davidson’s exports to the EU incurred an extra 25% tariff, tallying an estimated cost of $166 million,” he elaborated.
“A 56% tariff is unacceptable and will hinder our ability to market motorcycles in Europe…an obvious attempt to target Harley-Davidson as a symbol of Americana.”
Root cited motorcycle prices in Denmark to illustrate the potential impact on the company. He stated that under current tariffs, a motorcycle already costs customers $77,000 USD.
With the impending 56% retaliatory tariff, prices could soar to $124,000, which is over four times the price for US customers.
What are the new and refreshed Harley-Davidson motorcycles for 2025?
The lineup of all-new 2025 models includes:
The Street Glide Ultra designed for long-haul touring and the Pan America 1250 ST, a dynamic adventure sport motorcycle.
Harley-Davidson has also refreshed six iconic Cruiser models for 2025: the Low Rider S; Low Rider ST; Breakout; Heritage Classic; Fat Boy; and Street Bob.
The brand’s Sportster S has also received upgrades.
A limited-production collection of Custom Vehicle Operation (CVO) motorcycles includes four models: CVO Street Glide; CVO Road Glide; CVO Road Glide ST; and CVO Pan America.
The company stated that the new models complete the 2025 Harley-Davidson Grand American Touring, Cruiser, Sport, Adventure Touring, and Trike motorcycle range.
Root noted that the rising prices will undermine the essence of Harley-Davidson.
“What was once a dream of personal expression and freedom on the road has transformed into an unattainable luxury for numerous potential Harley-Davidson customers in Europe.
“My request here today is straightforward: we seek fairness.”
The tariffs come on the heels of Harley-Davidson’s CEO Jochen Zeitz’s remarks indicating that the company’s sales have been “significantly impacted” due to an aging customer demographic, elevated prices, and intense competition, especially from younger riders attracted to lighter, more affordable motorcycles.
