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Harley-Davidson braces for tariff cost increases

Posted: 7:09 PM, May 31, 2018
Updated: 2018-06-01 00:09:12Z

Milwaukee-based Harley-Davidson could see the price of its motorcycles rise as the result of trade tensions.

The Trump administration said Thursday it is imposing tariffs on steel and aluminum imported from Europe, Canada and Mexico. Canada and Mexico responded with tariffs of their own, and the European Union is expected to follow suit.

In a statement, Harley-Davidson said the company believes import tariffs on steel and aluminum "will drive up costs for all products made with these raw materials, regardless of their origin."

Harley-Davidson says it is evaluating its options for managing anticipated cost increases. The company also says it believes a retaliatory tariff on Harley-Davidson motorcycles in any of its major markets would have "a significant impact" on sales in those markets.

Harley-Davidson stock fell 2.2 percent to $41.08.