HARLEY-DAVIDSON is grappling with a new hurdle as the European Union plans to introduce $28 billion in tariffs on U.S. products, including motorcycles, effective April 1.
This legendary brand is expected to experience price increases in Europe, compounding its existing difficulties.
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These tariffs are part of a growing trade conflict between the U.S. and the EU, with Harley-Davidson being one of the brands most affected.
Recently, the company announced a £250 million loss in revenue, linked to widespread industry issues and a fall in sales.
CEO Jochen Zeitz acknowledged that revenue has been “significantly impacted,” highlighting challenges including an older customer demographic, rising prices, and tough competition from younger riders who often prefer lighter, more affordable motorcycles.
This latest round of tariffs aligns with the EU’s attempt to equalize the 25 percent tariffs that the U.S. has imposed on steel and aluminum, which affect a broad spectrum of products.
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European consumers are expected to bear the brunt of these price hikes, with Harley-Davidson standing out as one of the most recognizable American brands facing significant cost increases.
This could lead to elevated prices for its models, adversely affecting sales throughout the continent.
The tariffs are part of a comprehensive approach by the EU to retaliate against the U.S., which has experienced intensified trade disputes with the bloc during President Donald Trump’s second term.
The EU has been vocal in criticizing the U.S. tariffs, particularly the ones on steel and aluminum, viewing them as obstacles to fair trading practices.
President of the European Commission Ursula von der Leyen expressed her disappointment over the new tariffs, stating, “Tariffs are taxes. They are detrimental to business and even worse for consumers.”
She cautioned about potential disruptions within supply chains, economic instability, and the looming risk of job losses on both sides of the Atlantic.
The latest tariffs by the EU form part of a larger suite of retaliatory actions aimed at counterbalancing U.S. tariffs on goods from Europe.
While the U.S. has not yet exempted any products from these impending tariffs, EU leaders remain open to negotiations prior to their implementation.
However, as the April 1 deadline approaches, it is uncertain if an agreement will be made in time to prevent price increases for iconic American products like Harley-Davidson motorcycles.
In the interim, Harley-Davidson and other U.S. companies must adjust to this upcoming tariff wave, which is poised to significantly influence their pricing strategies and competitiveness in the European market.
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