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Motorcycles EU Hits Harley-Davidson Hard With 56% Tariffs on All Bike Imports

05:25  20 april  2021
05:25  20 april  2021 Source:   fool.com

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Just as Harley-Davidson (NYSE: HOG) looked like it was ready to hit the highway again after reporting strong first-quarter numbers, European regulators are trying to run it off the road by slapping the motorcycle maker with exorbitant new tariffs that will push the total rates to 56%.

a close up of a blue cloudy sky: EU Hits Harley-Davidson Hard With 56% Tariffs on All Bike Imports © Provided by The Motley Fool EU Hits Harley-Davidson Hard With 56% Tariffs on All Bike Imports

While the trade war between the U.S. and much of the rest of the world hasn't been forgotten, it was pushed to the rear burner in the wake of the global pandemic. EU trade ministers have now brought it back to a full boil.

a close up of a blue cloudy sky: Boxing gloves representing the U.S. and E.U. © Getty Images Boxing gloves representing the U.S. and E.U.

Harley reported its best U.S. sales in five years, selling 30,983 motorcycles in the first quarter, a 30% increase from the year-ago period, and 79% better than the fourth quarter. The gain coincides with the change CEO Jochen Zeitz made to the bike maker's new-model introduction schedule, which used to be in August, but now is timed to meet heightened buyer interest in riding in the spring.

Harley-Davidson’s First Adventure Bike, the Pan America 1250, Is Its Most Important Model in Decades

  Harley-Davidson’s First Adventure Bike, the Pan America 1250, Is Its Most Important Model in Decades The 118-year-old manufacturer hopes to blaze a new trail in market share and perception.Chalk one up to delayed gratification, as the first adventure bike from Harley-Davidson is finally here, the Pan America 1250. This motorcycle is, quite simply, the 118-year-old manufacturer’s most important model release in recent memory, as it signals a shift in both its philosophy and demographic.

However, Harley could see those gains suffer a setback because the EU's Economic Ministry in Belgium notified the company come June 1 it will be subject to enhanced tariffs.

As part of a retaliatory strike launched against the U.S. when President Trump sought to level the playing field of trade by hiking tariffs on certain trading partners, the EU responded by hiking tariffs against certain industries, primarily motorcycles and whiskey, that were designed to hit Harley and Jack Daniel's distiller Brown-Forman.

Bikes imported from the U.S. had a 31% total tariff slapped on them, but Harley had been allowed to sell bikes manufactured at its other international plants at rates of just 6%. The EU regulators now say Harley's motorcycles, no matter where they're made, face a 56% total tariff.

Harley borrows Detroit's used-car playbook to pursue younger riders

  Harley borrows Detroit's used-car playbook to pursue younger riders Harley borrows Detroit's used-car playbook to pursue younger ridersCHICAGO (Reuters) - Harley-Davidson Inc has decided the best way to get younger customers to buy a new motorcycle is to sell them a used one first.

Whether there will be a response from the Biden administration remains to be seen.

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usr: 1
This is interesting!