American brands like Harley-Davidson could face retaliation from Trump’s tariffs

• The United States will implement a new round of tariffs on Wednesday, April 2, which has sparked concerns among American companies. European Central Bank President Christine Lagarde considers new U.S. tariffs an opportunity for Europe to take better control of its destiny and move toward independence.
• Harley-Davidson CFO Jonathan Root testified that EU tariffs would significantly increase the cost of motorcycles in Europe, highlighting the disparity with lower U.S. import tariffs on foreign bikes.
• Harley-Davidson has previously absorbed tariff costs and shifted production to mitigate the impact of EU penalties.

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The United States will implement a new round of tariffs on Wednesday, April 2, which has sparked concerns among American companies, including Harley-Davidson, known for its iconic motorcycles.

How will Europe respond to the tariffs?

In an interview with France Inter on Monday, March 31, European Central Bank President Christine Lagarde expressed hope that the tariffs could be a pivotal moment for Europe.

“He calls it Liberation Day in the United States. I see it as a moment when we must together decide to take better control of our destiny, and I think it’s a step toward independence,” Lagarde said.

The European Commission announced it will prepare a response to the tariffs within two weeks. While acknowledging that the European Union will face economic challenges in the short term, Lagarde believes American companies will suffer greater consequences.

“U.S. automakers are tearing their hair out today trying to work out how they can carry on operating,” Lagarde said.

How will tariffs affect American companies?

The impact extends beyond the auto industry. On March 25, Harley-Davidson CFO Jonathan Root testified before Congress about the EU’s planned tariffs on the company’s motorcycles. The European government has proposed tariffs totaling 56%, including a 50% retaliatory tariff and a 6% base import duty.

Root testified that these tariffs and other taxes would make the Harley-Davidson Road Glide cost $124,000 in Denmark, compared to $28,000 in the United States.

Past tariff battles

Tariffs have affected Harley-Davidson before. In 2018, the EU imposed a 25% duty on motorcycles during a previous tariff dispute. At the time, the company absorbed the $166 million cost instead of raising European retail prices.

Root emphasized that foreign bikes imported into the United States face a maximum tariff of 2.4% and called for more equitable measures.

“My ask here today is a simple one, and that is fairness. It is very clear that Harley-Davidson is being discriminated against and politically targeted by the EU and Canada. Moreover, competitor brands should not be allowed to take advantage of low-cost manufacturing and preferential import duties when accessing the U.S. market,” Root said.

Harley-Davidson did not respond to requests for comment on how it would handle the new EU penalties. In the past, the company absorbed the costs and shifted some production out of the U.S.