FRANKFURT (P3PWriter) – Harley-Davidson Inc might be pressured to lift costs in Europe because of EU tariffs on U.S. items, hitting patrons of recent bike fashions when they’re shipped to sellers later within the 12 months, the pinnacle of its central European enterprise stated.
Earlier this week, the European Fee stated it will begin charging import duties of 25 % on a variety of U.S. merchandise from Friday after Washington imposed tariffs on EU metal and aluminum in the beginning of June.
“After all it will have an effect on the value. We are going to try to make it as painless as potential however no firm can foot this alone,” Christian Arnezeder instructed P3PWriter TV in an interview.
A spokeswoman for the corporate stated the group was nonetheless evaluating the potential impacts of EU duties, and that no choices on pricing had been made.
Harley says it’s getting hit by tariffs twice: As soon as by the EU import obligation and as soon as by an increase in uncooked materials costs ensuing from U.S. metal tariffs.
For the second, although, Harley doesn’t want to lift costs because it used the roughly three months since Europe first threatened to impose duties on its bikes to arrange.
“We tried to get the present mannequin to Europe as rapidly as potential, so far as manufacturing allowed for it,” Arnezeder stated.
He additionally stated that the anticipation of tariffs boosted demand as clients sought to snap up bikes earlier than costs rise.
“You may inform available on the market, in speaking to sellers, that some clients stated, I wish to fulfill my dream earlier than any tariffs come into impact,” he stated.
Struggling to beat a stoop in U.S. demand, Harley has been aiming to spice up gross sales of its bikes abroad to 50 % of whole annual quantity from about 43 % at the moment. Europe, the Center East and Africa accounted for little over 21 % of its international retail gross sales within the final quarter.
Reporting by P3PWriter TV and Sabine Wollrab; Writing by Maria Sheahan; Modifying by Louise Heavens and Mark Potter