Harley-Davidson announces drop in margins as a result of the trade war

New York, United States .- The iconic American motorcycle construction company Harley Davidson, which finds itself in a difficult economic situation, warned on Tuesday that a trade war between states And its partners would erode its profits in 2018

The famous brand born 115 years ago reduced its annual operating profit target barometer of its profitability, "because of the impact expected tariffs "imposed by the government of Republican President Donald Trump, explains the AFP

For this year, bet between 9% and 10% of earnings, against 9.5% to 10.5 % previously.

Since June 22, the European Union has decided to impose additional duties on a series of typically American products, including Harley-Davidson motorcycles, in retaliation for Washington's tariffs on imports of goods. Steel and aluminum.

The group's headquarters is located in Wisconsin, a stronghold of various Republican leaders, including House Speaker Paul Ryan.

European tariffs increased from 6% to 31% for brand-name products entering European soil, increasing the retail price of vehicles by about $ 2,200.

The manufacturer has decided right now to deal with this cost overrun instead of increasing its selling prices and also plans to transfer part of its production to avoid those tariffs that came into effect a week ago. before the end of the second quarter. Threatened by Donald Trump's retaliation, Harley-Davidson confirmed Tuesday that on July 30, it will release a brand revival plan and will give details of its new production sites.

The company's sales are down in the United States, but increase abroad; Europe is its second largest market.