Harley-Davidson warns of tariff impact, withdraws 2025 outlook

The imposition of tariffs has led Harley-Davidson to warn investors about adverse effects on its annual performance while also removing its predictions for 2025. The renowned motorcycle company predicts substantial challenges because of the trade framework implemented by U.S. President Donald Trump.

The company faced a USD 9 million financial loss in the first quarter despite its previous expectation of annual per-share profit staying flat to dropping by 5%. The current financial year will create a USD 130 million to USD 175 million cost burden for Harley-Davidson.

Harley-Davidson generated profit results exceeding expectations during the first quarter because of cost-saving efforts along with rising demand for touring models which resulted in a 5% increase in its stock value.

Outgoing CEO Jochen Zeitz expressed during a post-earnings call that the company is reorganizing its supply chain operations to better match present market conditions while building up production capabilities. Harley-Davidson plans to bring small displacement inexpensive motorcycles to the market which will target new riders especially those avoiding expensive traditional motorbike models.

Also Watch | India's import duty drop puts Harley in the fast lane

Harley-Davidson will reduce tariff effects by producing its motorcycles inside United States facilities while executing additional cost-saving measures among several alternatives. The corporate analysts agree that Harley-Davidson faces tight constraints on price adjustments stemming from current buyer affordability issues.

The rival motorcycle manufacturer Polaris and its "Indian" brand has removed its traditional annual sales and profit prediction because consumer demand remains weak and trade restrictions impact business operations negatively.

The motorcycle manufacturer Harley-Davidson faces opposition from H Partners which seeks to depose three directors including its CEO because the investor blames them for worsening company performance and stock market value decline. The firm declared it conducting assessment of a financial services division investment potential while simultaneously releasing confirmation about ongoing evaluation activities.

For the first quarter, Harley-Davidson reported a profit of USD 1.07 per share, down from USD 1.72 in the same period last year, but exceeding analysts' estimates of 78 cents per share.