Harley-Davidson is facing a sharp increase in tariffs in its largest export market.
The European Union imposed new tariffs on U.S. motorcycles in 2018, but implemented protections for Harley.
The motorcycle maker, however, this week announced that the EU had revoked those credentials effective Monday.
The decision raises the tariff from 6% to 31%; it will rise to 56% when a previously planned hike takes effect in June.
Harley officials said the ruling would render the company unable to compete in the EU, its second-largest market after the U.S.
CEO Jochen Zeitz said the decision “underscores the very real harm of an escalating trade war … on both sides of the Atlantic.”
The company vowed to file a legal challenge to the ruling.