Photo: Harley-Davidson
Harley-Davidson has reason to celebrate, as the U.S. Administration has reached a deal with the European Union on trade tariffs. The CEO of the Milwaukee-based marque stated his thanks to the administration on behalf of the company for the solution.
For those of you who were not aware of the whole tariff issue, the EU and the U.S. were in a rough spot that started off in 2018 with steel and aluminum tariffs. The latter was imposed by former President Donald Trump, and Harley-Davidson, along with bourbon manufacturers from Kentucky, was among those affected by the tariffs.
The new agreement, signed today, involves dropping retail tariffs that were meant to be applied on high-profile American industries starting December 2021. As the U.S. Commerce Secretary Gina Raimondo explained, the EU will maintain 232 tariffs, but the deal allows limited volumes of European steel and aluminum to enter the U.S. without any additional tariffs.
In return, those high-profile American industries, such as Harley-Davidson motorcycles, Kentucky bourbon, and other goods, will be exempt from the 50-percent increase in tariffs upon their import to the European Union. Harley-Davidson's CEO, Jochen Zeitz, stated that the deal is a “big win” for the company, as well as its customers, stakeholders, employees, and dealers in Europe.
Zeitz also noted that the agreement was an important course correction in the trade relations between the European Union and the United States of America.
In other words, Harley-Davidson will continue to be able to sell its motorcycles in the EU at the same price as before, even after December 2021. Before this agreement was made, the American brand risked missing out on sales in the EU, as the tariffs would have raised prices by at least 50 percent, if we were to judge by the proposed taxes.
This was not the first time when Harley-Davidson is caught between the EU and the U.S. on trade issues. The Milwaukee-based company attempted to stop the tariffs proposed for this year through legal action, but it looks like that will not be necessary anymore, now that the U.S. and the EU have this new agreement.
The new agreement, signed today, involves dropping retail tariffs that were meant to be applied on high-profile American industries starting December 2021. As the U.S. Commerce Secretary Gina Raimondo explained, the EU will maintain 232 tariffs, but the deal allows limited volumes of European steel and aluminum to enter the U.S. without any additional tariffs.
In return, those high-profile American industries, such as Harley-Davidson motorcycles, Kentucky bourbon, and other goods, will be exempt from the 50-percent increase in tariffs upon their import to the European Union. Harley-Davidson's CEO, Jochen Zeitz, stated that the deal is a “big win” for the company, as well as its customers, stakeholders, employees, and dealers in Europe.
Zeitz also noted that the agreement was an important course correction in the trade relations between the European Union and the United States of America.
In other words, Harley-Davidson will continue to be able to sell its motorcycles in the EU at the same price as before, even after December 2021. Before this agreement was made, the American brand risked missing out on sales in the EU, as the tariffs would have raised prices by at least 50 percent, if we were to judge by the proposed taxes.
This was not the first time when Harley-Davidson is caught between the EU and the U.S. on trade issues. The Milwaukee-based company attempted to stop the tariffs proposed for this year through legal action, but it looks like that will not be necessary anymore, now that the U.S. and the EU have this new agreement.
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