Harley-Davidson (HOG) Provides Update on Tariffs Impact

During its first quarter 2025 earnings presentation and in its most recent quarterly report on Form 10-Q, Harley-Davidson (NYSE: HOG) estimated that incremental tariffs on products between China and the U.S. would cost the Company $75-$100 million in 2025.
Following the Joint Statement on U.S.-China Economic and Trade Meeting in Geneva issued today, the Company now expects a $45 million reduction in those tariffs for a total estimated cost of $30-$55 million in incremental tariffs on products between China and the U.S. in 2025. The Company’s new expectation assumes that the incremental tariffs on products between China and the U.S. will be 30% from May 12, 2025 through August 12, 2025 and revert to 145% after the 90-day pause. If the tariff level remains at 30% for the remainder of 2025, we expect a $65 million reduction in the original incremental tariff estimate for a total estimated cost of $10-$35 million in incremental tariffs in 2025. If that $65 million reduction occurs, then the Company estimates the total impact of incremental tariffs worldwide would range from $65-$110 million in 2025.
Additionally, the Company now confirms that the HDFS transaction announced on the Company’s first quarter 2025 earnings call is continuing to progress with multiple interested parties. The Company now expects to provide details of a transaction during its second quarter 2025 earnings presentation as it targets a transaction close in the third quarter of 2025, subject to Board approval.

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