Uschi, don't do any nonsense! 

In the customs dispute between the EU and the USA, Harley-Davidson remains a political football 

(Frankfurt, October 20, 2021) Harley-Davidson and the EU punitive tariff - a never-ending story that now seems to be heading for anything but a happy ending. The sword of Damocles of 56 percent customs duty hovers over the company, which is innocent of the political conflict, and no one knows what will happen if it falls on them. Can the President of the European Commission, the US President and their representatives still reach an agreement in a timely and effective manner?

For Harley-Davidson , the misery began in 2018 when the European Union decided to confront then-US President Trump, who had imposed protectionist tariffs of 10 percent on European aluminum and 25 percent on European steel. Brussels quickly decided to impose increased taxes on the import of certain US goods - including motorcycles with more than 500 cubic centimeters. In addition to the six percent due so far, a further 25 percent should now be paid. The Motor Company took it in its stride and did not pass on the price increase to its European customers despite the considerable additional import costs.

When, from the end of 2019, almost all Harleys destined for our continent were manufactured in a new factory in Thailand instead of in the USA, the EU punitive tariff due to a so-called Binding Origin Information (BOI). However, this was withdrawn from the company in April 2021. The EU now collects a whopping 31 percent tariff on the import of every Harley, regardless of the place of production - 6 normal tariffs plus 25 penalty percent.

Once again, the price increase for imports was not passed on to Harley customers. But things were to get even worse for Harley-Davidson: Europe wanted to add a further 25 percent tariff from June 2021, but postponed the whole thing to December in May for consultation. The end of the year is now approaching, but the situation is still unclear for employees and customers.  

Injustice and unfair distortion of competition for Harley-Davidson

“If politicians don’t reach an agreement, that will mean a 56 percent import duty on every motorcycle from the end of this year – a deep injustice and unfair distortion of competition,” explains Matthias Meier , chairman of the German-Austrian and European Association of Harley-Davidson Authorized Dealers .

While European motorcycle manufacturers can continue to export to the USA with significantly lower import tariffs - 1.2 percent for machines up to 800 cubic centimeters, up to 2.4 percent for bikes over 800 cubic centimeters and 2.5 percent for cars - Harley-Davidson is likely to be will accumulate EU customs fees of over $100 million in 2021 alone - so far without any price correction for customers.

“Our conviction is: This cannot continue like this!” adds Matthias Meier. “The situation, which is currently unclear for everyone involved, may influence both the end consumer prices of our motorcycles and the Motor Company’s volume planning for Europe.”  

In plain language: The unresolved political controversies between European and American politics could add to the corona-related delivery bottlenecks as well as the semiconductor and container crisis: They could contribute to a further shortage of US bikes in the EU next year. Not only a situation that threatens the existence of the approximately 300 Harley-Davidson dealers and their approximately 5,000 employees in the European Union, but also an intolerable situation for European customers who would have to expect fewer and more expensive Harleys.  

Over the past few months, numerous political discussions have been held on the punitive tariff issue at all levels and with all the committees involved. A coalition of 88 European and American associations called on Ursula von der Leyen and Joe Biden to suspend the punitive tariffs. Antonio Perlot, Secretary General of ACEM (Association des Constructeurs Européens de Motocycles - The Motorcycle Industry in Europe) explains: “We remain committed to ensuring that both parties return to reason and find a solution.”  

We encourage you to sign the petition!

petition from the German and European Harley-Davidson dealer associations addressed to the European Parliament It was recently updated and aims to draw the attention of consumers and politicians to the messy situation and call on all decision-makers to reach an agreement on the matter.

Not only friends and fans of motorcycles from Milwaukee are called upon to sign, but also all Europeans who are interested in free trade and fair competition. enters “Harley-Davidson” in the search mask at www.change.org express their solidarity “Harley-Davidson dealer association against EU punitive tariffs”

Association of Harley-Davidson Authorized Dealers v.

The article as a podcast!