Harley-Davidson Inc. (NYS:HOG) said Monday it has received notification from the Economic Ministry of Belgium that following a request from the European Union, it will be subject to the to the revocation of Binding Origin Information (BOI) credentials, effective today. Since 2019, the motorcycle maker has operated with those regulatory credentials, which allow it to supply EU markets with bikes produced at its international facilities at tariff rates of 6%. The move means it will now be subject to a 56% tariff rate within the EE, which will prevent it from being able to compete there. "This is an unprecedented situation and underscores the very real harm of an escalating trade war to our stakeholders on both sides of the Atlantic," Chief Executive Jochen Zeitz said in a statement. "The potential impact of this decision on our manufacturing, operations and overall ability to compete in Europe is significant. Imposing an import tariff on all Harley-Davidson motorcycles goes against all notions of free trade and, if implemented, these increased tariffs will pose a targeted competitive disadvantage for our products, against those of our European competitors." Harley-Davidson shares were up 7% premarket after it posted far stronger-than-expected first-quarter earnings just ahead of announcing the new EU tariffs.
April 19, 2021, 6:50 a.m. EDT