Milwaukee-based Harley-Davidson Inc. was already expecting an increase in raw material costs this year, but new tariffs on steel and aluminum announced by President Donald Trump could add another $15 million to $20 million in additional costs, John Olin, Harley chief financial officer said Tuesday.
That’s going to provide quite a headwind for the company,” Olin said.
He cautioned the figure is an estimate based on what prices have done since the tariffs – 25 percent on steel and 10 percent on aluminum – were announced in February. Olin added that Harley saw a $4.2 million increase in raw material costs in the first quarter that was not the result of tariffs.
When the tariffs were first announced, Harley warned there could be “significant impact” from retaliatory tariffs and said in a statement the measures would drive up costs. Heavyweight motorcycles like Harley’s were among the products the European Union said could be hit with tariffs if Trump goes through with his plans.