Harley-Davidson to Move Some of Its Production to Europe

To combat the cost of retaliatory tariffs, Harley-Davidson announced they will move some production out of the U.S.

Harley-Davidson announced today in a public filing with the Securities and Exchange Commission (SEC) that they will move some their production to overseas facilities. At this time we do not know the specifics on how much of the company’s production will be moved overseas, but it is indeed a move that has cast a pall on the company, synonymous with ‘Made in America’ for the past 115 years. Harley-Davidson asserts that this move is necessary to keep the price of their motorcycles down, as a result of the retaliatory tariffs that the company would face from the European Union after President Trump placed tariffs on European steel and aluminum.

In the filing, Harley-Davidson stated that “EU tariffs on Harley-Davidson motorcycles exported from the U.S. have increased from 6% to 31%. Harley-Davidson expects these tariffs will result in an incremental cost of approximately $2,200 per average motorcycle exported from the U.S. to the EU.” The company stated this cost cannot be passed on to consumers and dealers without a lasting negative impact.

However, to keep costs down, and to keep the brand afloat, the company “will be implementing a plan to shift production of motorcycles for EU destinations from the U.S. to its international facilities to avoid the tariff burden.” The restructuring is expected to take 9 to 18 months, and at this time there is no word as to how many jobs will be affected.

According to The New York Times, Harley-Davidson’s stock price fell by 6% following the announcement.

The company stated that this was not a move they wanted, but feel they have no other options in light of the tariffs.

“Increasing international production to alleviate the EU tariff burden is not the company’s preference, but represents the only sustainable option to make its motorcycles accessible to customers in the EU and maintain a viable business in Europe,” the company said in the filing.

S.J. Bryan

Longtime automotive journalist S.J. Bryan has been covering the automotive industry for over five years and is an editor with Ford Truck Enthusiasts and regular contributor to F-150 Online, Harley-Davidson Forums, and The Mustang Source, among other popular auto sites.

Bryan first discovered her passion for all things automotive while riding in her parent's 1968 Ford Mustang. The automotive expert cut her teeth growing up riding on Harleys, and her first car was a Chevy Nova. Despite her lead foot, Bryan has yet to receive a speeding ticket.

The award-winning former playwright was first published at age 18. She has worked extensively as a writer and editor for a number of lifestyle and pop culture publications. The diehard gearhead is a big fan of American muscle cars, sixth-gen Ford trucks, and Oxford commas.

S.J. can be reached at sherryjbry@gmail.com.