Participants of a motorcycle parade ride their bikes to celebrate the 115th anniversary of the Harley-Davidson trademark, in Prague, Czech Republic, on July 7 2018. Picture: REUTERS/DAVID W CERNY
Participants of a motorcycle parade ride their bikes to celebrate the 115th anniversary of the Harley-Davidson trademark, in Prague, Czech Republic, on July 7 2018. Picture: REUTERS/DAVID W CERNY

New York — Harley-Davidson cut its forecast for profit margin this year, adding to its predictions of damage done by US President Donald Trump’s trade war.

Operating margin will drop to between 9% and 10% this year due to the expected impact of tariffs, the Milwaukee-based manufacturer said in a statement on Tuesday. The company had been projecting a margin of as much as 10.5%.

Harley was caught in the crossfire of Trump’s trade war last month when it announced plans to shift some US production overseas to sidestep higher tariffs imposed by the EU. The president attacked the iconic American company, claiming it was using the levies as an excuse to send jobs overseas. Already, Harley had announced plans to close a factory in Missouri and build one in Thailand.

The EU tariffs, which came in retaliation to Trump’s steel and aluminium levies, will cost about $2,200 per motorcycle shipped to Harley’s second-biggest market, the company estimated in a June 25 filing. The manufacturer hasn’t specified which of its overseas plants will begin producing bikes for European riders.

Bloomberg