The Harley-Davidson Motor Co. and Polaris Industries Inc., which produces the Indian brand of motorcycles, said they are considering the move of some production outside the United States in response to a steep increase in European Union tariffs on large-displacement motorcycles.

The motorcycles manufactured overseas would be for sale in the European and other markets.

The EU raised from 6 percent to 31 percent the tariff on U.S. motorcycles with 500cc or larger engines.

Harley-Davidson also said U.S. tariffs on steel and aluminum will cost as much as $20 million this year, with European Union retaliation adding $45 million in costs. The company has plants in India, Brazil and Australia, where production for its European customers will move, according to a report in The Washington Post.

Polaris said it may shift some production to its plant in Poland because of the EU tariffs.

Polaris said the tariffs will add $15 million a year to the company’s costs, if it continues to ship U.S.-made motorcycles to Europe.

The Twin Cities Business Journal reports that Indian Motorcycles are manufactured and assembled in Roseau, Minn.; Spirit Lake, Iowa; Osceola, Wis.; and Huntsville, Ala. Manufacturing and assembly also takes place in Monterrey, Mexico