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Harley-Davidson warns EU, Canada and Asian tariffs are pricing U.S. bikes out of markets
Summary
Harley-Davidson said retaliatory and high import duties abroad—including a proposed 56% EU duty and 25% Canadian tariff—are severely reducing its ability to compete and threaten U.S. manufacturing jobs.
Jonathan Root, president of commercial and chief financial officer at Harley-Davidson, told the Ways and Means Trade Subcommittee that Harley-Davidson faces steep, sometimes discriminatory import duties and taxes in multiple markets that put U.S.-made motorcycles at a competitive disadvantage.
"This is a shocking comparison to the 0 to 2.4% import duty that international motorcycle brands are able to take advantage of when accessing the U.S. market," Jonathan Root said, describing how proposed European punitive tariffs could reach 56% on Harley models while U.S. import duties on competing motorcycles typically range from 0% to 2.4%.
Root said Harley-Davidson employs more than 5,500 people worldwide and over 4,500 in the United States, including union-represented workers in Wisconsin and Pennsylvania. He detailed duties and taxes that affect retail pricing overseas: an already-applied 25% retaliatory tariff in Canada, EU measures that could add up to 56% total duty, and routine high-duty structures in parts of Asia—examples he recited include Thailand (60% import duty, 30% excise, 7% VAT), Indonesia (40% import duty, 95% luxury tax, 12% VAT), Vietnam (40% import duty, 21% excise, 8% VAT), and India (historically a 100% import duty plus additional levies).
Root also described how luxury taxes and value-added taxes combined with high tariffs can make a U.S.-made Harley prohibitively expensive abroad: "A Harley-Davidson RoadGlide in Denmark after VAT and luxury taxes can cost around $77,000; with a 50% additional retaliatory tariff that could balloon to $124,000—over four times the U.S. starting price," he said.
Witness testimony and member questions focused on reciprocity and enforcement: members asked whether trade agreements should require reciprocal tariff treatment and stronger enforcement of existing agreements. Root said Harley-Davidson seeks fairness, not protection. "We certainly aren't asking for protectionism, but rather fairness," he said. He recommended trade agreements include enforceable provisions to address retaliatory tariffs, non-tariff barriers such as licensing and emissions restrictions, and ensure country-of-origin rules are enforced.
Harley-Davidson also highlighted company-specific production footprints: powertrain operations in Menomonee Falls, parts manufacturing in Tomahawk, and assembly lines in York, Pennsylvania, where about 1,300 employees work on three assembly lines producing 33 models.
No committee votes resulted from the testimony. Members said they would consider these company-provided examples when shaping negotiating priorities and enforcement demands in prospective trade talks.
