The motorcycle manufacturer estimates its tariff costs could rise to $175 million this year, largely due to significant tariffs on Chinese imports, despite sourcing most supplies domestically. Global motorcycle sales dropped 21% year-over-year, with U.S. retail sales also declining. First-quarter revenue fell 23% to $1.33 billion, and motorcycle shipments plummeted from 41,577 to 24,865 units. CEO Jochen Zeitz emphasized refocusing on cost control, supply chain adjustments, and inventory optimization. Meanwhile, economic data shows the U.S. economy contracted unexpectedly, and consumer confidence hit its lowest since 2011 due to fears of rising inflation and recession. Zeitz has announced his upcoming retirement, prompting a leadership search. Activist investor H Partners is pushing to remove Zeitz and two board members, blaming them for Harley-Davidson’s poor performance and cultural decline. Harley contends H Partners’ actions stem from dissatisfaction over the rejection of their CEO nominee. Despite the turmoil, Harley-Davidson’s shares rose 3.4% on Thursday.