Harley-Davidson To Move Work Overseas Following European Tariffs… Trump Is Not Happy About It

Harley-Davidson is reportedly looking to relocate their facilities which produce for European customers out of the United States. The ongoing trade tactics from President Trump has resulted in a raised European tariff on steel which could cost the country’s iconic motorcycle company upwards of $100 million.

Rather than raise the cost of the European bikes, the company said they would instead focus on shifting its production facilities as to avoid paying the tariffs.

Per Fox Business:

Harley-Davidson will face up to $100 million in additional costs on a full-year basis as a result of the European Union’s (EU) increased tariffs on the company’s motorcycles.

The EU decision to place tariffs on various U.S. products, including Harleys, was in retaliation to the U.S. imposing tariffs on steel and aluminum exports from the EU into the U.S.

EU tariffs on Harley-Davidson motorcycles exported from the U.S. have increased from 6% to 31%. As a result, Harley-Davidson said there will be an incremental cost of approximately $2,200 per average motorcycle exported from the U.S. to the EU.

Harley-Davidson felt that if it passed on the cost increase to dealers and customers it would have an immediate negative impact on its business in the EU, including threatening the sustainability of its dealers’ businesses. For that reason, Harley said it would absorb the additional costs.

President Trump responded to the news in a series of tweets.

Trump said he was working and fighting behind the scenes to help the company. He added that he thought the company went out and waved the “white flag” without trusting the process.

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The president also said he thinks the company is using the existing tariffs as a cover for a previously planned move.

“Early this year Harley-Davidson said they would move much of their plant operations in Kansas City to Thailand. That was long before Tariffs were announced. Hence, they were just using Tariffs/Trade War as an excuse,” Trump tweeted. “Shows how unbalanced & unfair trade is, but we will fix it.”

“We are getting other countries to reduce and eliminate tariffs and trade barriers that have been unfairly used for years against our farmers, workers and companies. We are opening up closed markets and expanding our footprint. They must play fair or they will pay tariffs!”

The president then said his administration was nearly done conducting a study on the impact of European tariffs and said Harley Davidson would be forced to pay a “big tax” should it wish to sell back to the United States.

“When I had Harley-Davidson officials over to the White House, I chided them about tariffs in other countries, like India, being too high. Companies are now coming back to America. Harley must know that they won’t be able to sell back into U.S. without paying a big tax!”

“We are finishing our study of Tariffs on cars from the E.U. in that they have long taken advantage of the U.S. in the form of Trade Barriers and Tariffs. In the end, it will all even out – and it won’t take very long!”

“A Harley-Davidson should never be built in another country-never!” Trump said in another post, before predicting the relocation could have disastrous implications for the iconic company.

“Their employees and customers are already very angry at them,” Trump continued. “If they move, watch, it will be the beginning of the end – they surrendered, they quit! The Aura will be gone and they will be taxed like never before!”

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