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Internal chaos, boardroom disputes, and CEO issues exacerbate the situation

The sign of the US motorcycle manufacturer Harley Davidson is in front of the entrance of the Harley Davidson Store

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If Harley-Davidson’s sales figures weren’t already alarming, the internal dynamics of the company are chaotic as well. CEO Jochen Zeitz has announced plans to step down, but H Partners, Harley’s second-largest shareholder, demands immediate action. The firm owns 9% of the shares and is pushing for the ousting of three long-standing board members.

This tension escalated following the abrupt resignation of Jared Dourdeville, the H Partners representative on Harley’s board, who cited lack of transparency, leadership failures, and what he called “cultural depletion” within the company. This includes growing strain with dealers and consequences from removing DEI hiring quotas.

Leadership at Harley has struggled to align investor expectations with actual performance. The “Hardwire” strategy (developed by Zeitz) focused on premium models, limited production runs, and cost reductions, but has resulted in dwindling market share and increasing discontent among Harley’s loyal customer base.

Dealers are also venting frustrations, especially after the company introduced an online used bike marketplace that sidestepped them, combined with unfulfilled promises of support during the downturn.

At the same time, Harley attempts to highlight minor successes, such as a 5% increase in Touring segment market share, to counterbalance a crippling 47% revenue drop in Q4. However, investors remain skeptical, as the company’s stock has plummeted nearly 50% from its peak in 2023.

High prices, tariffs, and a shrinking customer base heighten the crisis

Money interest rate increase concept, percentage commission credit

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Harley-Davidson is up against a host of external pressures that would challenge any brand. Coupled with its internal struggles, these challenges have become existential threats. For instance, tariffs have returned, as President Trump proposed tariffs on imports from China, Mexico, and Canada, which could hurt Harley severely. Although the company shifted some production to Thailand, they do not manufacture bikes in Mexico or Canada, and rely on global sourcing for components. Tariff costs could potentially reach $175 million in 2025. Additionally, Harley already faces a steep 56% tax on motorcycles made in the U.S. when sold in Europe, which has contributed to a slump in its EU market share from 5% to just 2%.

Furthermore, high interest rates persist, making motorcycles a luxury item. Data indicates that over half of current and prospective buyers are postponing purchases due to economic uncertainty. Consequently, sales remain low, leading Harley to cut shipments to allow dealers to manage backlogged inventory.

The pricing strategy has also backfired. Harley raised prices at a time when consumers were tightening their budgets, creating affordability issues. Their high-end models are out of reach for a younger generation of riders. Instead of introducing more affordable, smaller models, the company doubled down on expensive Touring and Trike segments, which dominated their 2025 lineup.

While this strategy may appear sound from a financial perspective (higher profit margins, lower production volumes), it has made Harley vulnerable. With fewer young riders joining the community and loyal customers aging out, the brand’s future hinges on its ability to adapt, which appears to be lacking at this moment.

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.

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

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 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 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.