(Photo: CGTN)

US motorcycle maker Harley-Davidson reported on Tuesday a 6.4-percent profit drop in the second quarter, and warned further damage from trade war.

Harley-Davidson said its second quarter net income fell to 242.3 million US dollars, from 258.9 million a year earlier.

Its US retail sales in the second quarter of 2018 were down 6.4 percent to 46,490 vehicles, while international retail sales were slightly up 0.7 percent, compared to the same period of 2017. Overall, the second quarter retail motorcycle sales deceased 3.6 percent year-on-year to 78,428 vehicles.

The motorcycle maker also adjusted its outlook for 2018, saying the motorcycle segment operating margin will drop to between nine to ten percent, given the expected impact of tariffs.

The EU has slapped an additional 25 percent tariff on Harley-Davidson motorcycles made in the US, in retaliation against President Trump's protectionist measures.

To minimize the impact of trade war, Harley-Davidson has decided to move the production of motorcycles destined for Europe, its second largest market, from US factories to Thailand and other countries.