Harley-Davidson, stung by tariffs, shifts some USA production overseas

Harley-Davidson, stung by tariffs, shifts some USA production overseas

Harley-Davidson, stung by tariffs, shifts some USA production overseas

"When I had Harley-Davidson officials over to the White House, I chided them about tariffs in other countries, like India, being too high", Trump tweeted.

Harley Davidson has announced it will move production of motorcycles bound for Europe out of the United States to avoid retaliatory European Union tariffs. The company said that while it does not plan to raise retail or wholesale prices, it expects an incremental cost of $2,200 per unit exported from United States to the EU.

The Europeans are targeting iconic USA products like motorcycles, blue jeans and bourbon in retaliation for Trump's tariffs on European steel and aluminum. The EU has responded in kind, levying a tariff on several American products.

Instead, it will eat $30 million to $45 million for the rest of this year and $90 to $100 million annually.

"Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag".

Some analysts expect to see more instances of company shifts when the second-quarter earnings season kicks off next month.

"The EU is attempting to punish USA workers with unfair and discriminatory trade policies, and President Trump will continue to push for free, fair and reciprocal trade and hopes that the EU will join us in that", Sanders said. The EU sales make up nearly 16.4 percent of Harley-Davidson's worldwide sales. "Hence, they were just using Tariffs/Trade War as an excuse", Trump tweeted.

In January, the company said it was closing a factory in Kansas City, Missouri, and consolidating it into a York assembly plant.

Economists said Harley's decision to shift production outside of the United States is a predictable result of Trump's increased trade restrictions and, likely a sign of things to come.

Trump added that the administration is finishing a study on imposing tariffs on cars from the European Union, which he claims has taken advantage of the US for too long.

But Mr. Trump responded that Harley had chose to relocate some production "long before Tariffs were announced". This is clearly targeted at Milwaukee-based Harley-Davidson, though Indian Motorcycles (and parent company Polaris) will also be impacted. He's also complaining about how other countries are still taking advantage of America with "unfair" trade practices.

Trump said he's getting other countries to reduce and eliminate tariffs and trade barriers, and to open up markets.

"I fought hard for them and ultimately they will not pay tariffs selling into the European Union, which has hurt us badly on trade, down $151 Billion", Trump continued.

Americans are buying fewer motorcycles, people outside the United States are buying more, and Harley wants to build bikes closer to its global customers.

Wisconsin's elected leaders said the decision pointed to the need to expand markets.

Trump, in March, instituted a tariff of 25 percent on steel and 10 percent on aluminum imports.

The EU is imposing tariffs on $3.2 billion worth of American goods, including motorcycles, orange juice, bourbon, peanut butter, motorboats, cigarettes and denim.

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