Harley-Davidson Inc. has slashed its profit margin forecast for this year due to the expected damage from tariffs prompted by President Trump.
Bloomberg reports that the company’s operating margin will drop between 9 percent and 10 percent, after initially projecting a margin of as much as 10.5 percent.
The change in profit forecast comes after the company announced it would move production of motorcycles bound for European countries out of the United States due to high EU tariffs.
Harley-Davidson Inc. said at the time that it would not raise its prices due to “an immediate and lasting detrimental impact to its business in the region,” according to the AP.
The EU announced in June that it would implement retaliatory tariffs on U.S. goods in response to steep steel and aluminum duties imposed by the Trump administration.
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Trump tariffs force Harley-Davidson to drop profit margin forecast: https://t.co/2Nb9iDrs1F pic.twitter.com/FniCSE9O5l
— The Hill (@thehill) July 24, 2018
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