Loss Of IDR 148 Billion, Harley-Davidson Warns Of Negative Impact Of Trump Tariffs And Delays Projection 2025

JAKARTA - The legendary motorcycle manufacturer from the United States, Harley-Davidson on Thursday, May 1, issued a warning of a potential negative impact on financial performance this year due to trade rates. Furthermore, the company has also suspended its financial projections for 2025, indicating market uncertainty caused by US President Donald Trump's trade policy.

Previously, reported by Reuters on Friday, May 2, Harley-Davidson estimated a decline in annual earnings per share by between 0 to 5 percent. However, trading rates have begun to have an impact, with losses recorded at 9 million US dollars (equivalent to Rp148 billion current exchange rate) in the first quarter of this year.

The company estimates additional costs due to tariffs will reach between $130 million and $175 million this year. The move shows how protectionist trade policies can directly affect global corporate profitability.

Nonetheless, cost efficiency efforts and high demand for a touring model with higher profit margins helped Harley-Davidson surpass profit expectations in the first quarter, prompting a 5 percent increase in company shares.

In a post-financial reporting call conference, the CEO who will end his term soon, Jochen Zeitz, stated that the company is adjusting supply chains to current demand and building new capacities. Harley-Davidson also plans to introduce an entry-level model with smaller engines to attract young drivers who have been away from their expensive classic models.

To overcome the tariff impact, Harley-Davidson will rely on production in the United States and cost cuts, among other measures.

Longbow Research analyst David MacGregor stated that "The burden of tariffs is very problematic. Given the concerns about current affordability, HOG has a very small space for pricing without sacrificing unit sales significantly." This statement underscores the dilemma Harley-Davidson faces in balancing profitability and price competitiveness in the market.

Similar conditions were also experienced by Harley-Davidson competitor Polaris, the manufacturer of the motorcycle brand "Obviously". Polaris has also withdrawn its sales forecasts and annual profit, indicating the negative impact of consumer demand and trade rates. This shows that the challenges Harley-Davidson faces are not the company's single issue, but rather reflects the broader condition of the US motorcycle market amid the uncertainty of economic policy.