Harley-Davidson (NYSE:HOG) is making changes to its business to deal with tariffs from the European Union.

The tariffs from the European Union are in retaliation to tariffs introduced by President Donald Trump. The Trump tariffs are on  steel and aluminum that are imported from the European Union into the U.S.

According to Harley-Davidson, the new tariffs from the European Union, which went into effect June 22, 2018, increase tariffs on its motorcycles from 6% to 31%. All of HOG’s motorcycles are currently made in the U.S. and exported to Europe.

Harley-Davidson says that these new tariffs will result in an additional $30 million to $45 million in costs to the company for the rest of 2018. It also estimates that these costs will range from $90 million to $100 million for a full year.

Harley-Davidson notes that it won’t be passing these costs on to its customers living in Europe. Rather, it will eat the costs itself as it works on a plans to get around them. This will have the company shifting some of its motorcycle production to Europe. This shift will be for motorcycles that it would have otherwise exported to the region. This will let it avoid the European Union tariffs put in place to counter President Trump’s own.

“Harley-Davidson maintains a strong commitment to U.S.-based manufacturing which is valued by riders globally,” Harley-Davidson says in an SEC filing. “Increasing international production to alleviate the EU tariff burden is not the company’s preference, but represents the only sustainable option to make its motorcycles accessible to customers in the EU and maintain a viable business in Europe.”

HOG stock was down 5% as of noon Monday.

As of this writing, William White did not hold a position in any of the aforementioned securities.