By John Keilman

A Harley-Davidson isn't cheap no matter where you buy it.

But if the European Union imposes a 50% retaliatory tariff on the company's motorcycles in April, prices could reach astounding heights in Harley's second-largest market by sales.

Consider the Road Glide, a touring model that starts at $28,000 in the U.S. In Denmark, the price tag is already around $77,000 once the country's 25% value-added tax and 150% luxury tax are added.

The proposed new EU tariff, which officials said would be in response to levies imposed by the Trump administration, would take the Road Glide price to $124,000, the company said.

Harley said its products are afflicted by unfair trade policies in other markets, too. The company wants its overseas rivals to face reciprocal duties when they export bikes into the U.S.

"Competitor brands should not be allowed to take advantage of low-cost manufacturing and preferential import duty when accessing the U.S. market," Jonathan Root, the company's chief financial officer, told a congressional trade panel Tuesday.

The Motorcycle Industry Council, which represents numerous manufacturers , declined to comment.

Harley-Davidson, which is based in Milwaukee and does most of its manufacturing in the U.S., has been a beneficiary and a victim of tariffs. In the 1980s, the Reagan administration imposed duties on imported bikes, rescuing Harley from near-bankruptcy and helping it to dominate the domestic market.

In 2018, the EU imposed a 25% duty on Harleys during a global trade spat over metals; the fee stood for three years. The company absorbed the $166 million cost to hold down retail prices, and moved some production from the U.S. to Thailand to reduce the bill.

The company hasn't decided how it will price its bikes under the proposed new tariff, which a spokesman said would apply even to Harleys made in Asia.

Motorcycle-industry consultant Michael Uhlarik said the company has little wiggle room in Europe, a hypercompetitive market dominated by Asian bike makers and homegrown brands such as Triumph, Ducati and BMW.

"Even a 10% to 20% increase in pricing plus antipathy toward American brands in general would be a death knell," he said.

Harley's chief executive, Jochen Zeitz, grew up in Germany entranced by American culture, and he describes the bikes as a symbol of freedom and adventure. European devotees echo that sentiment, saying they appreciate Harley's sense of history and community-building power.

Though the company says it is profitable in Europe, its business in the region has been shrinking. Some riders and dealers complain that the bikes have become too pricey and the variety too meager. Harley doesn't compete in some categories popular in Europe and has failed to gain traction in others.

In 2021, the company introduced the Pan America, a so-called adventure touring bike meant to travel on-road or off-road. Europe is the biggest global market for adventure bikes, but the Pan America hasn't caught on there, said Thalassa van Beek, founder of Barcelona-based consulting firm Motorcycle Marketing.

The Harley spokesman said the company considers adventure bikes to be a growth opportunity.

Another fateful step came a few years ago when Harley discontinued its least expensive motorcycle, the Sportster. It accounted for a third of sales volume in the European region, but the company called it a money loser whose decades-old engine didn't meet modern air-quality standards.

The Sportster's replacement, the Nightster, has a cleaner and quieter engine but hasn't matched its predecessor's appeal.

"They were significantly overengineered and too expensive, so we lost the entry level," said Christian Arnezeder, a former leader of Harley's central European operations.

The spokesman said the retirement of the Sportster, which was in the works before Zeitz became CEO in 2020, improved dealer profitability in Europe.

Dealers and riders said Europe's strict clean-air standards have muffled the signature growl of Harley's V-Twin engines. Wolle Benz, president of the German Harley Riders club, has ridden Harleys for 30 years but said he can't imagine trading in his 2013 cruiser for a new model.

"If you buy a bike from 2025, you will say, 'Is this on?'" he said.

Root told the congressional panel that Europe isn't the only market where American-made bikes face hefty import levies.

Canada imposed a 25% retaliatory tariff in early March, while countries such as China, India and Thailand place even higher duties on the motorcycles, he said.

Meanwhile, Root said, bikes brought into the U.S. receive a 2.4% tariff at most. That imbalance is unfair to Harley, he said.

Write to John Keilman at john.keilman@wsj.com

(END) Dow Jones Newswires

March 30, 2025 23:00 ET (03:00 GMT)

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