Harley’s statement is one of the first from a major U.S. manufacturer that is caught in the midst of ongoing trade battles between the United States, the EU and China. The EU’s tariff affecting more than $3 billion of U.S. goods came as a response to U.S. duties on European steel and aluminum.

In addition to the U.S., Harley-Davidson currently has production facilities located in India, Brazil and a forthcoming facility in Thailand. The company said it will not increase the price of its motorcycles to counter the tariff, but expects an incremental cost of $2,200 per motorcycle exported from the U.S. to Europe.

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“Harley-Davidson believes the tremendous cost increase, if passed onto its dealers and retail customers, would have an immediate and lasting detrimental impact to its business in the region, reducing customer access to Harley-Davidson products and negatively impacting the sustainability of its dealers’ businesses,” the company said.

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