Harley-Davidson on Thursday suspended its full-year forecast as President Trump’s tariffs fuel economic uncertainty.
“Due to the uncertain global tariff situation and macroeconomic conditions, we are withdrawing our full year 2025 financial outlook,” the motorcycle maker said in a statement.
The company estimated its tariff bill could reach $175 million this year, even though most of its suppliers are in the US, because it still imports parts from China, which face a hefty 145% tariff.
Its global motorcycle sales plunged 21% compared to the year before, “driven by a volatile macroeconomic environment and overall consumer uncertainty,” the company said.
While automakers enjoyed a rush of sales, as customers hurried to buy cars ahead of any tariff-induced price hikes, Harley-Davidson saw consumers hold back on non-necessities and splurges.
It reported softer-than-expected retail sales in the US, with motorcycle shipments of 24,865 in the three months ended March 31 – compared to 41,577 in the same period last year.
Revenue fell 23% in the first quarter to $1.33 billion compared to the previous year
Moving forward, the company is focused on cost productivity measures, supply chain mitigation, tight operating expense control and slimming down inventory at dealers, according to CEO Jochen Zeitz.
Shares in Harley-Davidson jumped 3.4% by approximately 12:10 p.m. ET.
Data released on Wednesday showed the US economy unexpectedly shrank as companies rushed to import goods ahead of the tariffs.
Consumer sentiment last month, meanwhile, plunged to its lowest level since October 2011 as fears that the global trade war could reheat inflation and even trigger a recession grew, according to a monthly survey by the Conference Board.
Harley-Davidson, meanwhile, is on the hunt for a new CEO after Zeitz said in April that he plans to retire.
Investment firm H Partners has been fighting to kick Zeitz and two other longtime directors from Harley’s board at its annual meeting later this month, according to The Wall Street Journal.
H Partners has argued the three board members are responsible for Harley’s poor performance and “cultural depletion.”
Harley has said that H Partners is trying to orchestrate the CEO’s replacement out of spite, after its own candidate did not receive support from the board.
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