Besides the continuing financial issues facing Harley-Davidson, they expect the new tariffs issued by President Trump will add an increase to costs in the neighborhood of $15 to $20 million. Harley Davidson’s estimates are based on the increase of twenty-five percent on steel and ten percent on aluminum.
While Harley Davidson expected retaliatory tariffs from the European Union to drive sales down, retail sales were up more than six percent in Europe, the Middle East and Africa. There was also a seven percent increase in Latin America.
In the United States, retail sales were down twelve percent, but overall, thanks to the success outside of the U.S., revenue was up 2.7%.
Harley Davidson is being aggressive by introducing one hundred new models within the next decade and is seeking to make international sales fifty percent of their business. Harley is also working on electric motorcycles.