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Harley-Davidson will not raise prices despite EU tariffs

June 26, 2018

Motorcycle maker plans to shift production of bikes for EU destinations from the United States to its international facilities

Harley-Davidson said on Monday that it would not raise retail or wholesale prices for its dealers to cover the costs of the retaliatory tariffs by the European Union on US products.

The tremendous expense if passed on to its dealers and retail customers would have a lasting detrimental impact to its business in the region, the company said in a regulatory filing.

Harley-Davidson said tariffs would reduce customer access to its motorcycles and hurt the dealers' businesses.

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Last week, the European Commission said it would start charging import duties of 25 per cent on a range of US products after Washington imposed tariffs on EU steel and aluminium at the start of this month.

The company sees an annual impact because of the tariffs of about US$90 million (Dh330.6m) to $100m, and expects an incremental cost of about $2,200 per average motorcycle exported from the United States to the EU.

The company expects the incremental cost for the rest of 2018 to be $30m to $45m.

Harley said it plans to shift production of motorcycles for EU destinations from the United States to its international facilities to avoid the tariff burden.

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