Harley-Davidson is currently contending with tariff-related uncertainties, and a few weeks ago, the brand even pulled its forecast for the quarters ahead. The iconic motorcycle label barely managed to avoid the impact, owing to the profits it made from the high-margin rides in its portfolio, but beyond the first quarter, the company has projected a hit worth up to $175 million on its financial sheets. So, will Harley prices go up under Trump’s tariffs for an average buyer? Well, that would depend on the market you live in.
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In the U.S., the company has assured that it will rely on a mix of cost-cutting and the introduction of new models to win new buyers. Just how much it can cut down on imports in the wake of retaliatory tariffs would ultimately decide the asking price of its bikes in the U.S. Compared to other international vehicle brands, Harley-Davidson is still in a relatively safe spot, because the entire product development is exclusive to the U.S., and manufacturing is also overwhelmingly located on the home turf.
For now, a price hike seems out of the planning books. “Pricing is a lever that we’re also looking at, but not so much at this point in time, maybe selectively without significant price increases at least in the short term in the making,” Harley-Davidson’s chief, Jochen Zeitz, was quoted as saying during the company’s Q1 2025 earnings call. Chief Financial Officer, Jonathan Root, added that the company will be looking at making some “mix” adjustments for other products.
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Not out of the woods
Harley-Davidson sources components worth $50 million from China, and steel worth the same amount from Canada and Mexico, all of which are in the direct line of fire from tariffs announced by President Donald Trump. Moreover, the company has also diversified the production of its bikes overseas to Thailand, which are going to incur tariffs as finished products. Overall, depending on the market dynamics and how the tariff situation evolves, the company might eventually end up passing on the costs to buyers in the U.S.
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Elsewhere, the situation is grim already. In the EU, where luxury and value-added taxes already make Harleys a lot pricier, the retaliatory tariffs would worsen the situation. According to The Wall Street Journal, the price of the Road Glide model could climb from $77,000 to an acutely high $124,000. To recall, as the U.S. imposed a 2% tariff on steel and aluminum imports, which make up the bulk of Harleys, the EU retorted with its own duties. Harley-Davidson is caught in the crossfire, in what looks like a repeat of the 2018 tariff war.
Back then, the company absorbed the $2,200 hike from tariffs and pushed ahead with overseas production as the only sustainable option. In 2025, the rates have climbed, so it would be an even more challenging landscape. Elsewhere, India is reportedly mulling a zero import tax situation for all Harley-Davidson bikes with over a 750cc engine, making them dramatically cheaper in the country.
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