When foreign governments want revenge for U.S. tariffs, America's most celebrated motorcycle manufacturer usually makes the hit list.
The European Union hit Harley-Davidson with 25% retaliatory tariffs in 2018. In 2025, the EU threatened another round, while Canada imposed its own levy. Then this month, Canada struck again with a 50% import duty on the company's products as part of a wide-ranging response to heightened U.S. tariffs.
Harley has previously eaten retaliatory tariffs to keep retail prices stable, a practice that has cost it more than $170 million over the last eight years. The company declined to outline its plans for Canada, which accounted for 4% of its $4.5 billion in revenue last year, but said it was committed to supporting the country's dealers and riders.
This year's inventory has already arrived, but dealers are still worried about the possibility of future sticker shock. "It would be very surprising if the Canadian consumer would be willing to pay those prices," said Mandie Ciotucha, co-owner of Thunder Bay Harley-Davidson in Ontario.
For decades, Harley-Davidson and tariffs have gone together like leather and chrome.
When the company hovered near bankruptcy in the 1980s, it was boosted by levies the Reagan administration placed on imported bikes. In 2018, stiff motorcycle tariffs imposed throughout Southeast Asia prompted Harley to open a factory in Thailand.
Scott Lincicome, vice president at the Cato Institute, a free-market think tank, said it is no mystery why Harley keeps finding itself in the tariff crosshairs. The company's All American brand identity and swing state location make it a natural target for retaliation, he said.
"In terms of getting off the list, I think they're stuck," Lincicome said. "The economics are a distant second to the politics."
Trump's aggressive approach to trade has caused foreign leaders to single out the company as never before.
"We will now impose tariffs on motorcycles, Harley-Davidson, on bluejeans, Levi's, on bourbon," then-European Commission President Jean-Claude Juncker said in 2018 after Trump threatened steel and aluminum tariffs. "We can also do stupid."
In response, the company shifted some of its Europe-bound production to the Thailand factory, which eventually brought the rate down to 6%.
Harley's trade headaches continued when Trump returned to office with an even more combative agenda. Last year, after Trump imposed duties on steel and aluminum imports, the EU said it would respond with a 50% tariff on a range of goods-including the motorcycles made by Harley-though the measure never went into effect.
Canada also became a battleground. When the U.S. imposed a 25% tariff on Canadian imports last year, the country struck back with the same rate on Harleys and other products. The duty remained in place for six months and cost Harley $8 million.
This summer, tensions flared again. The Trump administration took exception to Canadian tariffs on American cars and trucks and placed a 50% duty on large motorcycles, along with many other products.
Canada doesn't have a sizable motorcycle manufacturing industry, but two models made by Quebec-based BRP were affected: the Can-Am Spyder and Can-Am Canyon, both three-wheelers. The company declined to say how many of the bikes it exports to the U.S.
On Sept. 8, Canada imposed a 50% tariff on large motorcycles and many other goods. The same day, the U.S. announced an outright ban on the importation of large bikes from Canada starting Sept. 29.
Raymond James analyst Joe Altobello said Harley might be better equipped than BRP to withstand an extended showdown, given that Canada represents a relatively small portion of Harley's overall business. "It's not a good thing, but it's not existential," he said.
Canada's motorcycle lobby has appealed for a truce, noting that dealerships employ thousands of people.
"We just want everyone to get back to the table and start talking about a deal that will work for the U.S., Canada and Mexico, too," said Landon French, chief executive of Moto Canada. "What's been built over the decades has worked very well for all three countries."
Other U.S. manufacturers, including Indian Motorcycle and Buell, have been collateral damage in the dispute. Indian, which lists 25 Canadian dealerships on its website, didn't respond to requests for comment. Buell Chief Executive Bill Melvin said his Michigan-based company sells only a few bikes in Canada.
Producing Canadian bikes in Thailand could be an option for Harley if the conflict drags into next year. Canada's Department of Finance said goods that don't originate in the U.S. aren't subject to the tariff.
Some Canadian dealerships are presenting the trade battle as a buying opportunity, noting that their current inventory is tariff-free. But some Harley loyalists say the national mood isn't conducive to big-ticket spending.
"In Canada, people are struggling from paycheck to paycheck now," said Garett Broenner, 60, who has hit pause on his plan to upgrade his 2003 Harley V-Rod. "If you have to pay another $15,000 on a bike, you're just not going to do it, no matter how much you might like the brand."
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