Harley-Davidson is moving Revolution Max engine production from Thailand to its Pennsylvania and Wisconsin plants ahead of Model Year 2028. The move erases the finished-goods import tariff on those bikes, including the Pan America, Sportster S, and Nightster. It offsets a projected $75-90 million tariff bill in 2026.
The tariff math: Harley paid $67 million in tariffs in 2025:
$31 million in steel and aluminum duties
$8 million on Canada
$6 million on Thailand
$22 million across China, India, the EU, Mexico, and the rest of the world
CFO Jonathan Root said on the Q1 2026 earnings call the company expects tariff costs of $75 million to $90 million for the full year. Building the bikes in the US removes the import duties on Thailand-made units. Steel and aluminum tariffs on raw materials remain, but they are smaller.
Why the math works here: The York plant was already idle, so fixed overhead was running without production. That changes the economics compared with building new capacity, where companies also need to recover construction costs.
Harley has both conditions that make a reshoring work. It has idle owned capacity and a tariff bill that shows no sign of easing. Bill Davidson, VP and special advisor to the CEO, called the move “another important step in getting back to the bricks,” a nod to CEO Artie Starrs' turnaround plan.
How we got here: Harley moved these models to Thailand in 2024, calling the shift temporary. That decision traced back to 2017-18, when US steel and aluminum tariffs drew EU retaliation that raised motorcycle duties on US-made bikes from 6% to 31%.
The exposure now runs in the opposite direction through finished goods entering the US. Harley posted a $29 million operating loss in 2025, with global sales down roughly 12%. That increases pressure to fund cost offsets.
What to watch: Harley says York will assemble more than 100,000 motorcycles in 2027 as the transition ramps up. An ISM survey found that 64% of manufacturers do not plan to reshore to dodge tariffs and instead expect to pass costs through via price increases. Harley is the exception because it has both idle owned capacity and concentrated exposure on a handful of models.
