Trump blasts Harley-Davidson’s decision to shift production overseas

Harley-Davidson Will Shift Manufacturing Overseas To Avoid Tariffs

Harley-Davidson Inc. plans to shift some production of its iconic motorcycles out of the United States in response to retaliatory European Union tariffs, as President Donald Trump's trade war ripples back to American companies.

In a Securities and Exchange Commission filing, Harley-Davidson said the 31 percent tariff, up from 6 percent, would add about $2,200 to the cost of each motorcycle - and the impact could reach $100 million per year.

Harley-Davidson executives said the company would not raise prices on their motorcycles, but rather they will absorb the cost and are expected to lose up to $100 million.

The Milwaukee-based motorcycle manufacturer sold almost 40,000 bikes in the European Union, its largest market outside of the USA, last year.

"Harley-Davidson maintains a strong commitment to US-based manufacturing which is valued by riders globally".

Harley-Davidson, facing rising costs from new tariffs, will begin shifting the production of motorcycles heading for Europe from the USA to factories overseas.

Most young people are too buried in student loans or the gig economy to shell out more than $20,000 for a part-time ride, so to prop up flagging popularity here at home, Harley-Davidson began trying to improve foreign sales.

The president said via a tweet during the 10-minute ride: 'Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag. But since then the company has been counting the costs of his trade policies.

Citing tariffs tied to escalating tension between Trump and the European Union, the iconic motorcycle maker will further retrench its U.S. operations. All three say they will be forced to close their plants unless they can get relief from the Trump administration's steel tariffs. It anticipates the cost for the rest of the year to be approximately $30 million to $45 million.

Today Trump is fuming over Harley Davidson's recent decision to move production overseas, according to BBC News.

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It's true that Trump fought hard for Harley-Davidson, especially so in India.

Monday's news comes roughly a year into Harley-Davidson's "The Journey" program.

The company said it will provide more details of the financial implications of retaliatory European Union tariffs and its plans to offset their impact on July 24 when its second-quarter earnings are due.

For the US, Harley-Davidson production isn't changing: the motorcycles sold in the country will still be made here.

In response, the European Union hit the USA with tariffs on $3.2 billion worth of American products, including motorcycles.

A USA motorcycle sales slump has deepened since then, spurring Harley's decision in January to close a plant in Kansas City, Missouri, eliminating about 260 jobs. Harley-Davidson shares sank more than 5 per cent in morning trading on Monday, its worst day in months.

Trump has said that "trade wars are good and easy to win", but users of imported steel and aluminum already are feeling the pain of the administration's policies.

White House press secretary Sarah Sanders also told reporters at a briefing on Monday that the European Union was "attempting to punish USA workers with unfair and discriminatory trade policies".

Harley-Davidson expects ramping-up production in global plants will require investment and will take at least 9 to 18 months to be fully complete.

The impact on USA workers because of Harley-Davidson's decision was not immediately clear. It also has manufacturing operations in Australia, Brazil, India and Thailand. The EU threatened that its payback for those levies would be to boost taxes on USA motorcycles, Levi Strauss jeans and bourbon whiskey.

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