When two people argue, it affects the third party.
The EU wants to impose tariffs of over 50 percent on Harley-Davidson motorcycles.
(Frankfurt, May 5, 2021) In April 2021, news from Brussels caused great astonishment at Harley-Davidson: The EU Commission revoked the company's Binding Origin Information (BOI), which means that a „punitive tariff“ will be imposed – and it's a hefty one: From June 1, 2021, Harley-Davidson will have to pay customs duties totaling 56 percent on every motorcycle sold in the European Union.
As a reminder, after the Trump administration decided in June 2018 to impose tariffs of 10 percent on European aluminum products and 25 percent on European steel products for protectionist reasons, the EU retaliated by publishing a list of US products — including motorcycles with an engine capacity of more than 500 cubic centimeters — which have since been subject to additional tariffs when imported into the EU.
For the machines from Milwaukee, the total customs duty rose from six percent to 31 percent. Harley-Davidson did not pass on the additional burden to its customers, but instead absorbed the drastically increased costs itself for a while. It was not until a good year later that the situation changed: since the end of 2019, almost all Harleys for Europe have been produced in Thailand, and BOI approval from the EU has now ensured a moderate customs duty rate of six percent for the import of these machines.
The EU now wants to abolish this BOI and at the same time double the „punitive tariff“ to 50 percent. This means that gasoline-powered Harley-Davidson motorcycles will in future be subject to a total import duty of 56 percent, regardless of where they are manufactured. The Association of Harley-Davidson Dealers e. V. considers this to be quite unfair, as European motorcycle manufacturers can continue to export to the US at significantly lower import duties: 1.2 percent is payable for machines up to 800 cubic centimeters, up to 2.4 percent for bikes over 800 cubic centimeters, and 2.5 percent for cars.
Matthias Meier, Chairman of the German-Austrian and European Association of Harley-Davidson Dealers, explains: „The EU's decision contradicts our idea of fair trade relations. It puts our motorcycles at a significant competitive disadvantage compared to other brands and therefore has a massive impact on our business activities as authorized dealers.“ Antonio Perlot, Secretary General of the European Motorcycle Manufacturers Association (ACEM), adds: „We call on the European Commission and the new US administration to resume positive transatlantic trade dialogue. We remain strongly committed to ensuring that both parties return to reason and find a solution.“
However, it is not yet clear what impact the EU decision will have on European Harley-Davidson dealers and European customers. „One thing is certain: this is far more than just unfair, it threatens our very existence,“ emphasizes Matthias Meier. „Almost all of us authorized dealers sell only the Harley-Davidson brand and are responsible for more than 10,000 new registrations with the Bar & Shield logo on the tank in Germany alone each year.
In this country, 67 authorized dealers with around 1,000 employees are affected by the potential impact, while in Europe there are around 370 H-D dealerships and the number of jobs affected is around 5,500. And of course, we mustn't forget the thousands of customers in the EU. In this trade dispute, we do not want to be caught between the millstones of politics with our customers and fans of the brand. We therefore welcome the fact that the manufacturer Harley-Davidson is appealing against the EU decision.“
The Association of Harley-Davidson Dealers continues to advocate for free and fair trade and hopes for solidarity from the entire European motorcycle community.
Association of Harley-Davidson Authorized Dealers.
Now every Harley fan is in demand!
Link to >>> PETITION AGAINST PUNITIVE TARIFFS
