Harley-Davidson has managed to avoid a crippling European Union tariff to the tune of 56 per cent entry ticket into the European market. The current import tariff is 31 per cent, and the EU deferred a tariff plan that would have seen the classic American motorcycle brand face the hiked 56 per cent tariff. The tariffs were initially imposed in 2018 in retaliation to a Trump administration tariff on steel (25 %) and aluminium (10 %), with the EU planning a tariff retaliation beginning from June 1.
Also Read: Harley-Davidson Slammed With EU Tariffs
Jochen Zeitz, Harley-Davidson Chairman, President and CEO is looking to turn around the iconic brand's fortunes, in the US, as well as around the world
"We are encouraged by today's announcement that tariffs affecting our products will not escalate from 31 per cent to 56 per cent. This is the first step in the right direction in a dispute not of our making. Harley-Davidson employees, dealers, stakeholders, and motorcycles have no place in this trade war. These tariffs provide other motorcycle manufacturers with an unfair competitive advantage in the EU. European motorcycles only pay up to 2.4 per cent to be imported into the US. We want free and fair trade," Jochen Zeitz, Chairman, President and CEO of Harley-Davidson, said in a statement.
Also Read: Harley-Davidson Reports Positive First Quarter Results For 2021
Harley-Davidson is trying to re-invent itself and the Pan America 1250, the company's first ADV, will be an important product for the European market
The tariff hike was set to come into effect from June 1, but it has been shelved as both the US and EU set about negotiations on steel and aluminium tariffs. Harley-Davidson would have been the biggest loser if the tariff increase had gone through, and according to estimates, the tariff would have impacted $ 4 billion in exports from the US.
Also Read: H-D Pan America 1250 Bookings Open In India; Prices Begin At Rs. 16.90 Lakh
The latest news will come as a relief, even though temporary, as Harley-Davidson is getting ready to launch one of its most important models of recent years in Europe, and other markets around the world, including India. The Harley-Davidson Pan America 1250 is the brand's first adventure touring model, and its success will also depend on how well it does in European markets, where the ADV segment has been traditionally dominated by European brands like BMW Motorrad, KTM and Triumph.
