Harley-Davidson Inc. pared back its 2018 profit margin forecast.
In a statement released Tuesday, the Milwaukee-based iconic motorcycle maker said that it has revised down its expectations for operating margin this year to 9-10% - compared to its previous forecast of 9.5-10.5%. The firm indicated the potential role of tariffs in raising costs and therefore eating away at profits as a reason behind the downward revision in margin projection.
Last month, Harley had expressed its willingness to shift some its production overseas in order to avoid the European Union’s tariffs on American goods. The EU tariffs were a retaliation to U.S. President Donald Trump’s levies on steel and aluminum imported from the EU. However, the motorcycle maker was severely criticized by Trump on its relocation plans.