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.

More news: Gareth Southgate: ‘We wouldn’t swap Harry Kane for anyone’

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.

Related News:

Most liked

Mohamed Salah's Apology To Egypt
Kadyrov went on to proclaim that Salah had been granted honorary Chechnyan citizenship. The Egyptian soccer federation maintains that Salah has not complained.

Back 2 Back! Brooks Koepka Wins Another US Open
Koepka, 28, played at FSU from 2009-12 before turning pro; he has nine professional victories, including two on the PGA Tour. As for the chance for a 62, Fleetwood was well aware of that score standing over a nine-footer for birdie on the 18th hole.

Local, state officials applaud U.S
The court gave South Dakota a victory, knocking aside the physical-presence rule as arbitrary and obsolete in the digital age. But smaller online stores may not have been collecting sales tax, which the Supreme Court ruling could change.

Supreme Court ruling may boost Virginia tax income by $300M
Rocky Cummings of BDO the accounting, tax, and advisory firm said: "There was very little voluntary compliance with the use tax ". South Dakota, the Court concluded that the "sales tax nexus" previously articulated by the Court in Quill v.

OPEC and allies reach agreement to share oil production increase
On Saturday , ministers of the cartel met with major producers outside OPEC, including Russia, Mexico and Kazakhstan, in Vienna . Falih has warned the world could face a supply deficit of up to 1.8 million bpd in the second half of 2018.

Uruguay beat Saudi Arabia and went to the playoffs
Another drily noted: "Arab countries always differ in everything but agree to leave the World Cup together". The defeat means both they and Egypt are eliminated from the tournament after successive defeats.

Trump Backtracked On The Separation Of Families On The Border
It is unclear how long this will take to litigate or whether the judges would be willing to permit indefinite detention of minors. As deflated members of his staff either rush for the exits or distance themselves from his whims, Trump is largely alone.

Shaqiri stuns Serbia to give Swiss hope
After holding off Brazil in their opening contest, Switzerland will be eager to pick up their first win at the expense of Serbia . A reporter asked Petkovic how he would discuss the issue with his players, and the coach sidestepped the question.

Priest slaps crying baby at baptism ceremony
The woman can be heard saying something to the priest before the man has to physically remove the baby from the priest's arms. A family was shocked when a priest slapped their baby across the face when he wouldn't stop crying during his baptism.

Instagram’s vertical answer to YouTube — Here’s IGTV
One big disappointment from a design standpoint though, is that the app does not support full-screen iPhone X video. If Instagram's trying to take a chunk out of YouTube's near-monopoly on video, it's starting from a strong place.

Star Wars Spinoffs On Hold At Disney
Regardless, this is having an impact on Disney's plans to expand the Star Wars mythology with more Star Wars Story spinoffs. Solo: A Star Wars Story is directed by Ron Howard with a script from Lawrence Kasdan and son Jon Kasdan.

Merkel seeks European Union migrant talks as German coalition crisis looms -paper
The Bavarians have threatened to defy Merkel and on Monday go ahead with plans which she has sought to block. Seehofer has been one of the fiercest critics of Merkel's liberal stance.

EU withdrawal bill compromise deal divides East Lancashire's MPs
A total of 89 Labour MPs defied Corbyn in the vote on this amendment, making it the party's biggest Brexit rebellion yet. No government would survive if it tried to dispense with Parliament's input, he said.

#HotGoss: Beyonce and Jay-Z release joint album
Tidal swapped its weekend exclusive on Jay-Z and Beyonce's album for a new exclusive, a single from the Carters called Salud . On the record, they get extremely personal about life, love, relationships , cheating, family and, of course, friends.

Major Upsets as World Cup Advances
North said the fans take pride in showing others that they clean up and are respectful outside their country. He said: "You often hear people say that football is a reflection of culture".