Harley-Davidson hit by European Union tariffs

Harley-Davidson hit by European Union tariffs

Harley-Davidson hit by European Union tariffs

"In this administration, our allegiance will be to the American workers and to American businesses, like Harley-Davidson, that were very strong in the 1980s and I remember this - you were victims of trading abuse - big trading abuse, where they were dumping all sorts of competitors all over the place", Trump said to Harley-Davidson executives in February of 2017.

In his latest Twitter rant targeting the iconic maker of motorcycles, Mr Trump warned: "If they move, watch, it will be the beginning of the end - they surrendered, they quit!" Trump wrote. "The Aura will be gone and they will be taxed like never before!"

The company says it's doing so because of tariffs it faces in a trade dispute between the USA and the European Union.

"Taxes just a Harley excuse", Trump added.

This is in order to avoid retaliatory tariffs imposed by the European Union in response to Trump's import tax hike on steel and aluminium imports. She was asked for President Donald Trump's reaction to Harley-Davidson announcing it would shift the production of motorcycles headed for Europe from the U.S.to factories overseas.

And while Harley-Davidson may appear to be on an island right now, it would seem unlikely that they are the last company to make an investment decision that is net negative for the USA economy - either by pulling investment, employees, or both - from the country given the current state of play.

The effect on Harley is staggering; duties have increased from 6% to 31%, which would raise the export cost of the average motorcycles by $2,200.

"On a full-year basis, the company estimates the aggregate annual impact due to the European Union tariffs to be approximately $90m to $100m", it added.

In fact, Trump has tried to threaten numerous countries with tariffs if they don't reduce tariffs and other trade barriers, but so far most of those discussions have ended in acrimony and frustration.

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The company reported $5.65 billion in revenues past year and Europe is its largest overseas market, with nearly 40,000 customers buying motorcycles there in 2017.

Harley-Davidson also announced it would be raising investments in the new chosen locations. But Trump wasn't quite done with his remarks about Harley-Davidson this morning.

The EU is "attempting to punish United States workers with unfair and discriminatory trade policies", White House Press Secretary Sarah Huckabee Sanders said. "Now they are trying to use the tariffs to excuse and deflect from that decision". Does Harley even understand what 'Made in America means?'

US President Donald Trump has warned legendary motorcycle maker Harley-Davidson of unprecedented tariffs if the company moves part of its production overseas. We need to do something with the tariffs, and we have to.

Milwaukee-based Harley-Davidson said it had made a decision to build the plant in Thailand after Mr Trump pulled out of the Trans-Pacific Partnership, which would have slashed import tariffs.

But just over a year later, Harley serves as a sobering example of what happens when Trump's America First trade policy collides with the rest of the world. It appears that move has little to do with Monday's decision by the company to move more manufacturing out of the United States.

Republican Sen. Ben Sasse of Nebraska, who has criticized the Trump administration's reliance on tariffs against US trading partners, took issue with Monday's tweet. It would be a shame for Harley-Davidson if it lost business based on a misleading statement about foreign-built motorcycles being sold here. "If bikes are made elsewhere, European Union taxes on trade hurt the U.S. economy but do not hurt Harley Davidson profits or the European Union consumer".

Donovan, however, says that the move makes ideal sense in the context of the new tariffs.

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