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Donald Trump criticises Harley-Davidson for moving some production overseas

Donald Trump criticises Harley-Davidson for moving some production overseas

Harley-Davidson says that it will be shifting production of motorcycles intended for the European markets overseas in the wake of a 6 to 31 percent tariff announced Friday by the European Union.

After the European Union hit motorcycle imports from the USA 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. He tweeted, "Harley must know that they won't be able to sell back into US without paying a big tax!".

He said the Alliance has reached out to Harley-Davidson with questions on whether plans to move 450 jobs here from Kansas City will be affected.

The action comes in response to tariffs the European Union imposed on USA -made motorcycles.

Harley executives later traveled to Washington for a meeting with Trump, who said they told him of the difficulty they faced selling motorcycles overseas.

Harley-Davidson opened plants in India and Brazil in recent years and is opening another in Thailand this year.

"Harley-Davidson believes the tremendous cost increase, if passed onto its dealers and retail customers, would have an immediate and lasting detrimental impact to its business in the region", the company said in Monday's filing.

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

Last fall, Ryan traveled to Harley-Davidson headquarters in his home state to tout how the Milwaukee-based motorcycle maker and other companies would experience lower taxes from the historic GOP tax-cuts law. To refresh your memory, H-D is shutting down its manufacturing facility in Kansas City, which is expected to result in a net loss of about 400 jobs as some of the manufacturing gets rolled into the company's Pennsylvania plant.

Government - rebel peace talks break down
She has since accused the government of "serious betrayal" by reneging on the promised compromise . Asked whether he thought more resignations were coming, Mr Lee said: "I honestly don't know".


On Monday, the vice president of the European Union's governing body said that Europe and China will form a group aimed at updating global trade rules to address technology policy, government subsidies and other emerging complaints in a bid to preserve support for worldwide commerce. Harley-Davidson's India plant at Bawal, Haryana now has a manufacturing capacity of 12,000 units per annum and exclusively manufacturers the Street 500, Street 750 and Street Rod.

More potential pitfalls for Harley-Davidson and other USA manufacturers could be on the way.

Trump also suggested Tuesday morning that his adversarial approach to trade policy had only begun. The company said the shift will require additional investment and could take nine to 18 months to complete.

Struggling to overcome a slump in USA demand, Harley has been aiming to boost sales of its iconic motorcycles overseas to 50 percent of total annual volume from about 43 percent now. But if you ask Harley-Davidson, there's no connection between Kansas City and Thailand.

Wisconsin-based Harley-Davidson said the increased cost from the tariffs threaten its global sales, which it has been trying to expand.

In January, Harley-Davidson said it would close a plant in Kansas City, Missouri, due to a sharp drop in USA demand for its motorcycles, but said it would consolidate work done there into its plant in York, Pennsylvania.

USA president Donald Trump has used Harley-Davidson as an example of a USA business that is being harmed by trade barriers.

Mike Gearhardt, who was a roundtable participant during Trump's Dayton campaign visit, said he could not have anticipated that Trump's "generalities and platitudes" that afternoon would translate into as much as $700,000 in lost profits this year for his employee-owned JBK Manufacturing. Morningstar Equity Research said in a note that the tariffs might "temporarily" hamper some of the company's planned growth initiatives. "That was long before the tariffs were announced", the President went on.


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