Motorcycle maker Harley-Davidson, announced last week that they would be shifting their production overseas. This news comes amid a widening global trade fight. The reason for the company’s move is to escape new European tariffs that have been imposed as retaliation to President Trump imposing tariffs on steel and aluminum.
As a consequence of the new European tariffs, in a report from Harley-Davidson Inc., the company expects “these tariffs will result in an incremental cost of approximately $2,200 per average motorcycle exported from the U.S. to the E.U.”
Trump addressed the news in a tweet: “Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag. I fought hard for them and ultimately they will not pay tariffs selling into the E.U., which has hurt us badly on trade, down $151 Billion. Taxes just a Harley excuse – be patient!” He later tweeted more about the company throughout the week, accusing the company of using tariffs as an excuse and also issued a suspected threat saying, “Harley must know that they won’t be able to sell back into the U.S. without paying a big tax!”
However, Harley-Davidson does not plan to import bikes that have been manufactured overseas to the U.S. The company will only sell bikes that are made abroad to others who are also abroad and the U.S. made bikes will still continue to be made in the U.S.
A new Harley-Davidson facility is expected to open in late spring 2019 at Gateway Town Center in Little Rock.