Harley-Davidson Faces $67M 2025 Tariff Hit, Forecasts $75–105M in 2026
Harley-Davidson incurred $67 million in tariff costs in 2025, including $31 million from 50% steel and aluminum levies, $8 million from Canadian duties, and $17 million from tariffs on China, Mexico, India, Thailand and the EU. The company anticipates $75–105 million in tariff expenses for 2026 despite mitigation efforts, with 75% of components sourced in the U.S.
1. 2025 Tariff Cost Breakdown
Harley-Davidson absorbed $67 million in new or increased tariffs last year, driven by a 50% steel and aluminum levy that cost $31 million. Canadian duties added $8 million, while tariffs on China, Mexico, India, Thailand and the EU contributed $17 million, plus $11 million from other regions.
2. 2026 Tariff Outlook and Mitigation
The company expects tariff expenses of $75–105 million in 2026 and has adopted a U.S.-centric supply strategy, sourcing 75% of components domestically and operating three of its four manufacturing centers in the U.S. Ongoing trade volatility will be monitored, with supply-chain adjustments planned to limit cost impacts.