Motorcycle maker Harley-Davidson (HOG) withdrew its annual financial guidance on Thursday, citing uncertainty from tariffs.

While Harley does most of its manufacturing in the United States, sourcing is “where the big impact is,” CEO Jochen Zeitz said. He noted that while the company’s sourcing and production are highly US-centric, the 145% tariff rate on imports from China is so steep that it still represents a “big whammy” for the company.

“So at some point, a trade deal with China is critical,” Zeitz said in the company’s earnings call. “While our exposure and our overall spend … coming from China is well below 6%, 145% makes it so significant, which is why we’ve already … started to move proactively product components out of China, and we are continuing to do so.”

Harley stated that the first quarter direct impact from tariffs was limited to $9 million; however, it estimates a $130 million to $175 million cost impact from tariffs for the full year.

In addition to China, Europe is another market Harley is watching. The European Union paused its targeted tariffs on US motorcycles that were levied in retaliation, and Zeitz said he believes that a trade deal will ultimately be inked before those tariffs resume.

It remains to be seen if the escalating trade tensions between the US and its trading partners damage Harley’s quintessentially American branding abroad.

In terms of the US market, the company noted that trade barriers for foreign motorcycles may be beneficial, giving it an edge over foreign motorbike makers like Ducati and Honda. That was the case in 1983, when the Reagan administration imposed a 45% tariff on imported motorcycles to help Harley beat back foreign competition.