Tariffs might sound like abstract policy jargon, but they pack a punch for companies—and consumers. Imagine a product costing $20 to import and selling for $30. Now slap a 50% tariff on it. The cost to import balloons to $30, forcing the retail price to $40 to keep profits alive.
That added cost? It doesn’t come out of the exporting country’s pocket—it lands squarely on the consumer. The idea is to nudge companies into sourcing domestically, but when domestic costs match or exceed those imports, the price hike stays.
Harley-Davidson Can’t Afford The Suggested Tariffs
For Harley-Davidson, tariffs aren’t a new thing. During the Trump administration, counter-tariffs from the UK and EU made Harley’s bikes even pricier overseas, an existential threat as domestic demand nosedive.
With a shrinking American market and an aging customer base, Harley’s future depends on selling affordable, small-displacement bikes in Europe and Asia.
But if tariffs resurface—triggered by potential sweeping U.S. import taxes under another Trump presidency—Harley could see its overseas prices skyrocket, putting them out of reach for riders in competitive markets dominated by affordable brands like CFMoto and Bajaj.
Add economic headwinds like high interest rates and stagnant wages, and Harley’s predicament looks dire. Tariffs may be a trade strategy, but for Harley-Davidson, they could be a death knell.
For a more in-depth look at this, check out Jonathon Klein’s great reporting at RideApart, and keep an eye out for more news about this topic. Things are going to get even more hairy for Harley in the coming years.
