Harley-Davidson to shift motorbike production overseas over European Union tariffs

Harley-Davidson to shift motorbike production overseas over European Union tariffs

Harley-Davidson to shift motorbike production overseas over European Union tariffs

There, it competes with European and Japanese-made motorcycles which are not subject to the new tariff. In a filing, the company estimated that it will spend up to $100 million each year to keep its price tags flat.

Despite Trump's assertion that "trade wars are good, and easy to win", however, Harley isn't so impressed.

On March 1, President Donald Trump announced that the us would be imposing steep tariffs on all imports of steel and aluminum into the United States.

In addition to being a possible economic harbinger, the loss of Harley-Davidson's production also comes as a symbolic blow to Trump.

After the European Union hit motorcycle imports from the US with a 31 percent tariff, Harley-Davidson decided that its best move was to move production outside of the U.S.to avoid the tariff altogether. "There's a lot of irony here, to put it mildly". The stock is down 18 per cent this year.

"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 ultimate goal, if we could get there, is no tariffs or if anything few tariffs on anything", said Mr Walker, a Republican.

White House press secretary Sarah Sanders blames the European Union for those lost American jobs.

But in fact, trade wars might not be good for the United States after all - and they certainly aren't easy.

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Harley's move is an example of what economists say will likely be a growing trend: businesses leaving the USA because of Trump's tariffs. That increases the costs for companies to bring the parts they need into the USA to complete their products.

"Harley-Davidson's announcement today is the latest slap in the face to the loyal, highly-skilled workforce that made Harley an iconic American brand", IAM president Robert Martinez said in a statement, adding that the decision to close down the Kansas City, Missouri plant was made before the European Union announced its tariffs.

The president hosted Harley executive at the White House in 2017 and has repeatedly praised the company as a strong homegrown product. "I know your business is now doing very well and there's a lot of spirit right now in the country that you weren't having so much in the last number of months that you have right now".

The Bush administration learned this lesson when it imposed steel tariffs in 2002.

Harley has been dealing with woes independent of Trump's policies.

Harley-Davidson, which has been focused on expanding its overseas sales, said it remained committed to U.S. manufacturing. Overseas sales also have been stalling.

In the first quarter, retail sales of motorcycles fell 12 percent in the United States but rose almost seven percent in the European/Middle East/Africa region. Martinez added. "Does Harley even understand what "Made in America" means?" He called the plan the "latest slap in the face to the loyal, highly skilled work force" that builds the company's bikes. Yet, Harley has warned consistently against tariffs, saying they would negatively impact sales.

Retaliation by Brussels targeted producers in Republican states where Trump draws much of his support - including bourbon whiskey, Levi's jeans - and is expected to raise the prices of U.S. goods worth up to €2.8bn (£2.5bn).

Harley-Davidson, stung by new tariffs, said it will shift some motorcycle production to factories outside the U.S. The motorcycle manufacturer said in a regulatory filing that it's shifting production of motorcycles heading to Europe from the U.S.to overseas factories.

"We are now assessing the potential impact on our USA facilities", Michael Pflughoeft, a company spokesman, said in an email.

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