As the business landscape continues to grapple with the pernicious specter of tariffs, Harley-Davidson's CEO, Jochen Zeitz, is sounding the alarm on the financial fallout. The company's woes are multifaceted, with estimates suggesting that the impact of tariffs could be a staggering $130 million to $175 million this fiscal year alone.
This represents a stark contrast to the paltry $9 million incurred in the recent quarter, a tantalizing glimpse into the vast chasm between the company's hopes and the harsh realities of the tariff-driven trade war. Zeitz astutely observed that despite 75% of Harley's supply chain being rooted in the United States, the company still relies heavily on China for certain critical components, a poignant reminder that the interconnectedness of the global economy can be a double-edged sword. As the stakes continue to escalate... Zeitz's words take on an air of urgency, "as he implored the administration to include the auto industry in any future tariff negotiations." "There's a lot of talk about the auto industry, "but we want to make sure that we are part of the discussion and the agenda,"" he said... his voice laced with a sense of determination.
Here's a two-paragraph article: The impact of tariffs on Harley-Davidson's business is a significant concern. According to CEO Jochen Zeitz, the company estimates that tariffs could cost between $130 million and $175 million this year alone. While 75% of Harley's supply chain is based in the US, the company still relies on China for certain components.
This reliance on international suppliers makes Harley vulnerable to changes in global trade policies, such as tariffs. Harley-Davidson is not the only company affected by tariffs. In 2021, the EU threatened a 56% tariff on US-made motorcycles and other products, "including Kentucky bourbon and peanut butter." In response... the US president signed a proclamation offering auto companies credits for a portion of the tariffs on auto parts imported to build vehicles in the US. The rebates are equal to 15% of the value of vehicles assembled in the US. Harley-Davidson is advocating for its inclusion in future tariff deals... emphasizing the importance of being part of the ← →
Harley's Hog Tied Tariffs and the Perils of a Globalized World
Ah, Harley-Davidson. The very name conjures images of leather-clad rebels roaring down Route 66, fueled by freedom and the open road. But even icons aren't immune to the capricious winds of global trade wars. Jochen Zeitz, the current chieftain at Harley, is letting out a bit of a squeal (or maybe a dignified rumble, he is a CEO after all) about the crippling effect of tariffs. It seems even the mighty Hog is feeling the pinch. 🐷
We're talking serious money here, folks. The sort of money that would make Scrooge McDuck blush. Potentially $130 to $175 million this fiscal year alone. Ouch! That's a lot of chrome and exhaust pipes. And while a mere $9 million hit last quarter might seem like a fender bender, it's merely a prelude to the impending economic pile-up. It's like noticing a small puddle before realizing you're standing at the foot of Niagara Falls.
Zeitz makes a salient point that even with 75% of Harley's supply chain based in the good ol' US of A, they're still reliant on China for essential bits and bobs. This, my friends, is globalization in a nutshell. A beautiful, interconnected web...that can also strangle you if one thread gets pulled too hard. It's a reminder that in today's world, no nation is an island. We're all entangled, whether we like it or not. Like a plate of spaghetti, but with slightly higher stakes. 🍝
And Zeitz, bless his corporate heart, is lobbying to get the auto industry a seat at the tariff negotiation table. He wants to ensure Harley (and, by extension, the rest of the automotive sector) isn't left holding the bag when the music stops. You can almost hear the desperation in his plea, the silent scream of a capitalist caught between a rock and a hard place.
These tariffs, you see, aren't just abstract numbers. They're real-world consequences for companies, workers, and ultimately, the consumer. They ripple through the economy like a stone dropped in a pond, distorting markets and creating uncertainty. It's a bit like trying to navigate a dirt bike through treacle, isn't it? 🫠
Global Trade Negotiations
The global trade landscape is abuzz with the latest developments in the ongoing saga of tariffs and negotiations. Harley-Davidson, a stalwart of American industry, finds itself at the forefront of the debate, with CEO Jochen Zeitz sounding the alarm on the financial fallout of the trade war. The company's reliance on China for critical components is a stark reminder of the intricate web of global supply chains that underpin modern commerce.
As the stakes continue to escalate, Zeitz is advocating for the auto industry to be included in any future tariff negotiations, a move that could have far-reaching implications for the global economy. The Harley-Davidson CEO's words are laced with a sense of determination, "as he seeks to bring attention to the plight of companies like his own.".. which are caught in the crossfire of the trade war. The Journal Sentinel reports that Harley-Davidson's troubles are expected to worsen... with estimates suggesting a staggering $130 million to $175 million in losses due to tariffs this fiscal year alone.
Harley estimates the impact of tariffs on the company could be between $130 million and $175 million this year alone and was $9 million in the recent fiscal quarter. Although 75% of Harley's supply chain is U.S.-based, like other companies it relies on China for certain components, CEO Jochen Zeitz said in a May 1 conference call with industry analysts.●●● ●●●
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