Harley-Davidson Hit With EU Tariff Ruling, Plans Appeal

04/19/2021

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Alistair MacDonald and Colin Kellaher | The WSJ

Harley-Davidson Inc. HOG +10.72% has been hit with a European Union import ruling that the motorcycle maker says would impose a massive tariff increase on its products and keep it from functioning competitively in Europe.

The Milwaukee-based company has been one of the highest profile U.S. casualties of recent trade disputes, after the EU slapped a 25% duty on it and other U.S. goods in 2018. Those levies were a response to tariffs the Trump administration imposed on steel and aluminum from producers in Europe and elsewhere.

On Monday, Harley-Davidson said Belgium’s Economic Ministry, on behalf of the EU, had notified the company that it was revoking an agreement that allowed the business to supply Europe with certain motorcycles produced at its international manufacturing facilities at tariff rates of 6%.

Harley-Davidson said the EU ruling would apply to its entire product portfolio and subject all products—regardless of origin—to a 56% import tariff within the trade bloc.

The European Commission, the EU’s executive arm, didn’t immediately respond to a request for comment.

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