European Union proposes tariffs on Harley-Davidson motorcycles

The European Union is preparing to impose tariffs on Harley-Davidson motorcycles and other high-profile U.S. products in retaliation for President Donald Trump’s planned taxes on imported steel and aluminum.

Friday, European Commission President Jean-Claude Juncker identified Harley-Davidson bikes and Levi jeans as targets for “countermeasures” the European Union has been preparing, according to CNN.

Trump has said he would impose a 25% tariff on steel imports and a 10% tariff on aluminum imports, a move welcomed by the U.S. steel industry but opposed by manufacturers of metal products.

The EU said earlier its response would be “swift, firm and proportional.”

Canadian Prime Minister Justin Trudeau said Trump's planned steel and aluminum tariffs are "absolutely unacceptable" and would cause serious disruption of markets on both sides of the border.

Canada is the top supplier to the United States of both products.

This wouldn’t be the first time that Milwaukee-based Harley-Davidson, the world’s largest manufacturer of heavyweight motorcycles, has faced tariffs in trade disputes. The EU threatened tariffs on its bikes in 2003 when President George W. Bush sought taxes on imported steel.

Roughly 16% of Harley-Davidson’s sales are to Europe, according to industry analyst Robin Farley with UBS Investment Research.

Europe will be Harley's main international stage this summer, with about 100,000 people expected to ride their bikes to Prague from 56 countries for the company’s 115th anniversary celebration.

RELATED: Harley-Davidson more focused on bikes than concerts for 115th anniversary in Milwaukee

“We will wait for more details on the proposed tariffs before we comment,” Harley spokesman Michael Pflughoeft said Saturday.

A second Wisconsin company also is in the news this week in connection with Trump's tariff threats. The Washington Post reported Friday that billionaire investor and former Trump adviser Carl Icahn sold a $31.3 million stake in Manitowoc Co. in February, shortly before Trump's Thursday announcement, which caught many investors off guard.

The crane maker once employed several thousand people in Manitowoc but has since moved much of its work out of state and to Mexico.

Icahn had not actively traded any Manitowoc Co. stock since January 2015, according to regulatory filings.

Trump's planned measures are aimed at bolstering the U.S. aluminum and steel industries, which have been hit hard by imports, especially from China.

Section 232 of the Trade Expansion Act of 1962 gives the president the authority to restrict imports and impose unlimited tariffs if a Commerce Department investigation finds there is a threat to national security. Commerce Secretary Wilbur Ross said there was a threat, noting that only one U.S. company now produces a high-quality aluminum alloy needed for military aircraft.

Skeptics, including some Republican lawmakers, quickly objected, saying that trading partners and rivals would slap counter-tariffs on U.S. products and increase costs worldwide.

"The president is proposing a massive tax increase on American families," said Sen. Ben Sasse (R-Neb.).

Sen. Orrin Hatch (R-Utah), a frequent supporter of Trump, denounced what he called "a tax hike the American people don’t need and can’t afford." And he urged the president to reconsider.

Critics say the tariffs could harm many U.S. industries, including breweries and canned vegetable companies that use imported metal for product containers.

RELATED: Tariffs on aluminum could raise beer prices

Wisconsin has scores of companies that manufacture products from steel and aluminum.

Milwaukee is home to the Association of Equipment Manufacturers, a trade group that represents makers of agricultural and construction equipment.

"President Trump shouldn’t undercut his own goal of helping U.S. manufacturers 'win' again by imposing counterproductive tariffs on steel imports," said AEM President Dennis Slater.

"About 30 percent of equipment manufactured in the United States is eventually intended for export. Tariffs or quotas on steel and aluminum imports will burden U.S. manufacturers with higher costs while our competitors in China, India and Mexico will get a free pass to use the cheapest input materials they can find," Slater said.

"If President Trump wants to boost domestic steel production, the best way would be to invest in our infrastructure system and focus on further streamlining regulations," he added.

USA Today contributed to this report.