Harley-Davidson To Shift Some Production Overseas Due To Trade War

Harley-Davidson To Shift Some Production Overseas Due To Trade War

Harley said increasing production at its overseas worldwide plants would require incremental investments and could take at least nine to 18 months. While it's committed to making motorcycles in the USA, it has no other choice in a market where it sold nearly 40,000 bikes a year ago.

The Wisconsin-based company already has factories in Brazil and India, and is opening one in Thailand, while closing its Australian plant.

"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 March, Harley-Davidson - which was saved by tariffs on imported motorcycles back in 1983 - slammed Trump's tariffs on imported steel and aluminum just as they were laying off hundreds of American workers and moving their jobs to Thailand, as Breitbart News reported.

Harley-Davidson announced its intentions in regulatory filings posted to the company's website on Monday, June 25.

Harley-Davidson bikes are lined up at a bike fair in Hamburg, Germany, February 24, 2017.

But many members of the president's own party oppose his trade policy.

Trump took to twitter to express his criticism and stated "Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag".

Mr Trump vowed to make the iconic motorcycle maker great again when he took office previous year.

Trump criticized Harley's decision and, in a cryptic tweet, suggested it ultimately would not face tariffs.

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Speaking to clients in a daily audio update, UBS Wealth Management's chief economist Paul Donovan described the tariffs imposed by the Trump administration on the European Union and China, as well as retaliatory tariffs from the affected parties as a "19th century tax".

It anticipates the cost for the rest of the year to be approximately $US30 million ($40 million) to $US45 million ($61 million).

Harley-Davidson has disputed those allegations, arguing the move was about boosting overseas sales.

Harley shares fell as much as 4.2 per cent and were down 4 per cent to US$42.45 as of 10:35 a.m.in NY.

Aram... The Trump administration's duties on European goods led to these retaliatory tariffs... and it seems to be backfiring on American companies...

The European Commission in Brussels gave final approval last month for a 25 per cent duty on 2.8 billion euros (US$3.2 billion) of EU imports covering a range of USA products including Harley motorcycles, Levi Strauss & Co. jeans and bourbon whiskey.

Despite Trump's assertion that "trade wars are good, and easy to win", however, Harley isn't so impressed. Brussels levied that penalty in response to Trump's tariffs on steel and aluminum imports.

White House press secretary Sarah Sanders blames the European Union for those lost American jobs. The affected American motorcycle brands will certainly be Harley-Davidson and Indian Motorcycle, which will see higher sticker prices in Europe, and is certain to affect sales.

Shares in Harley-Davidson were down by 4.1 percent to $42.38 (£31.92) shortly after the market opened.

The EU, like Canada, Mexico and China all are aiming retaliatory tariffs at targets aimed to weaken Trump and the GOP in key political battlegrounds. (16 percent of its global sales), it's moving production of its European Union fleet outside the US, citing the new tariffs as its reasoning.

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