Donald Trump attacks Harley-Davidson for moving production away from the US

Donald Trump attacks Harley-Davidson for moving production away from the US

US President Donald Trump on Monday slammed Harley-Davidson Inc after the motorcycle maker said it would move production for European customers overseas to avoid retaliatory tariffs that could cost it up to US$100 million (S$136.2 million) per year.

Harley forecast the EU's retaliatory tariffs would cost the company $US90 million ($121 million) to $US100 million ($135 million) a year.

Europe is Harley's second biggest market outside the USA and sold nearly 40-thousand motorcycles in the Europe past year.

'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, according to CNN, said.

On Saturday, the European Union began to tax early $3.3 billion worth of imports from the U.S., including Harley-Davidson motorcycles, in response to the Trump administration's 25 and 10 percent tariffs on steel and aluminum, respectively, imposed in late May.

White House press secretary Sarah Huckabee Sanders downplayed the announcement earlier Monday, saying Trump's "trade and economic policies have been a huge benefit to the American economy".

Executives in Harley-Davidson were among the first to visit the White House in February 2017 shortly after Trump took office. That increases the costs for companies to bring the parts they need into the United States to complete their products.

Mr Trump vowed to make the iconic motorcycle maker great again when he took office past year, meeting company executives at the White House and thanking them "for building things in America".

Mr Trump says the duties are necessary to protect the United States steel and aluminium industries, which are vital to national security. It anticipates the cost for the rest of the year to be approximately $30 million to $45 million. Seemingly, this has left Harley-Davidson little option but to shift production elsewhere.

Erdogan expects Turkey’s development level to reach the levels of Russia, US
More than 50 million voters will head to the polls on Sunday to choose both the president and representatives to the Parliament. More than 59 million Turkish citizens, including some 3 million living overseas , were eligible to vote.

It's not like Harley-Davidson only manufactures its products in the U.S. right now, though.

Last week German automaker Daimler AG cut its 2018 earnings outlook, a change that it says is partly due to increased import tariffs for US vehicles in China. US companies that make higher-value goods like motorcycles are now getting hit by export tariffs on their products and import tariffs on their raw goods.

Trump has also ordered tariffs be imposed against Canada, Mexico and other US allies, as well as China.

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

"We are extremely anxious about the consequences of a trade war and are urging the White House to not advance with this plan", Ryan's spokeswoman, AshLee Strong has previously revealed.

To prevent further long-term damage to the company's revenues, it said the production of motorcycles for European Union destinations needs to switch from the United States to its global facilities. It was also plants in Pennsylvania and Missouri, along with facilities in Brazil, India and Australia.

However, the tariffs have also helped to spur investment in U.S. steel plants. These range from cranberry and orange juice concentrate, to bourbon, jeans, and Harley-Davidson's bikes.

But that status made the company a target for European Union retaliation along with bourbon and blue jeans.

Related Articles