Harley-Davidson and the new EU-US tariff deal – what does this mean in concrete terms?
The new trade deal between the US and the EU is here. At the last minute, both sides agreed on July 27, 2025, to a deal that averts an impending trade war for the time being.
The US is foregoing the originally threatened 30 or 50 percent import duty and instead imposing a flat 15 percent tariff on EU products. This may sound like relief, but in reality it only affects European exports to the US.
For Harley-Davidson this deal will not bring any direct relief for the time being. This is because US exports such as Harley motorcycles to the EU are still subject to high tariffs. Although the full punitive tariff of up to 56 percent is still formally part of the EU measures against US products, it is not currently being levied. Since the end of 2021 this additional surcharge has been suspended, meaning that only the regular EU duty rate of around 6 percent is currently due.
Nevertheless, the risk remains. The punitive tariffs could be reactivated at any time should the political situation escalate again. It is precisely this uncertainty that makes a long-term pricing strategy for the European market difficult. An earlier attempt to escape this by relocating production to Thailand also failed. The EU considered this a circumvention strategy and continues to impose high tariffs on such models.
What Harley really needs is a strategic decision. The brand wants to position itself as younger, tap into new target groups, and launch a motorcycle priced under €10,000. But with the current customs tariffs, this is difficult to achieve. Final assembly or even production in Europe would be one step forward—but that is expensive and not feasible in every country. The requirements in terms of logistics, infrastructure, and quality control are high.
It will be exciting to see whether a new vehicle will come from India in 2026. Certain models could be produced much more cheaply there for a new target group, and it would be realistic for an entry-level model from this line to remain well below the €10,000 mark – even including transport and taxes. But here, too, it remains to be seen how the EU will assess this in terms of customs duties.
One thing is certain: Harley-Davidson is at a point where it needs more than just new technology or good design. Without real market access, any price sensation remains a mathematical game. If you want to reach young people in Europe, you have to deliver one thing above all else: a motorcycle that is ultimately available at a competitive price at the dealer.
Negotiations between the EU and the US have been concluded. On July 27, 2025, US President Trump and EU Commission President von der Leyen announced a new trade agreement. It provides greater planning security for companies, as a flat tariff rate of 15 percent has been agreed for most EU exports to the US.
However, the deal does not bring any relief for US products entering the EU, such as Harley-Davidson motorcycles. The EU punitive tariffs on US motorcycles that were introduced earlier remain formally in place, even though they are currently suspended. This does not currently result in a direct reduction in tariffs for Harley-Davidson in Europe.
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