Harley-Davidson may face a downgrade of its corporate credit rating because of retaliatory tariffs by the European Union.

S&P Global Ratings warned of the possible downgrade on Wednesday, citing concern about "near-term cost increases" because of the EU tariffs. S&P warned in January it was worried about Harley-Davidson's sales declines.

Harley-Davidson said on Monday that it would lose as much as $100 million per year because of EU tariffs on motorcycles that it ships from the United States. Those tariffs are a retaliation for trade penalties imposed by the Trump administration.

The company also said it would move some motorcycle production overseas. President Donald Trump lashed out at the company on Tuesday and warned that it "will be taxed like never before!"

A downgrade from a credit rating bureau like S&P makes borrowing more expensive for companies. S&P's rating for Harley is A-minus — not sterling but in the top tier.