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Harley shifting production overseas to address European Union tariffs

28 Juin 2018

"The European Union is trying to punish U.S. workers because they have engaged repeatedly in unfair trade practices". For example, India is a rapidly-growing motorcycle market and they have huge taxes on imported motorcycles from America.

Outside the US, Harley-Davidson has manufacturing facilities in India, Brazil and Australia.

Trump says he's getting other countries to reduce and eliminate tariffs and trade barriers, and open up markets. Now he is expected to restrict technologies sold to China, and Chinese investment in USA companies.

Cox says he rides a Harley but is not "married to it" when it comes to picking between his hog and Trump.

In response to Harley-Davidson's proposed move, President Trump expressed his disapproval on Twitter: "Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag".

In January, the company said it was closing a factory in Kansas City, Missouri, and consolidating it into a York assembly plant.

The company also warned of a potential "significant impact" from retaliatory tariffs after President Donald Trump announced the steel and aluminum tariffs.

In a series of tweets, Mr. Trump framed Harley-Davidson's announcement as a fake-out, claiming the company had already said it would shift manufacturing overseas and was "just using Tariffs/Trade War as an excuse". The company's announcement sparked a massive selloff in the stock market amid fears that other companies might follow suit, anxious about getting caught in the middle of Trump's trade war with Europe, Canada, Mexico, China, Japan, and possibly India.

The company employed about 2,100 people at manufacturing plants in the United States at the end of a year ago.

The company does not have any manufacturing facilities in Europe.

THE FACTS: Harley said no such thing.

The EU imposed retaliatory tariffs last week on $3.4 billion worth of US products like bourbon, motorcycles and orange juice.The new duties are in direct response to President Trump's decision to increase fees on aluminium and steel coming from Europe. The ugliness of the Harley Davidson spat has spilled over into a large dispute about the USA trade deficit with India, which, at $ 23 billion, is less than a tenth of Beijing's surplus with Washington.

"The plant under construction in Thailand is a separate and unrelated issue".

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 U.S. to its worldwide facilities.

Jerry Spangler of Dover said he thinks plans for overseas production "was in the making way before Trump got in". "It is not meant to reduce USA manufacturing".

"The president's trade and economic policies have been a huge benefit to the American economy, and this includes the creation of over 300,000 manufacturing jobs". The EU targeted the USA vehicles as part of its rebuttal to Trump's tariffs on imported aluminum and steel. And many of Trump's tariffs focus on intermediary goods, or parts, that are then incorporated into finished products. The revenues from European Union countries were second only to the United States. As for the company's true motives, there's no way to know for sure. Could Trump's tweets make a dent in H-D sales? "And we're going to support him 100%".

Rising trade tensions and retaliatory tariffs could pose serious risks for Harley-Davidson, rating agency Moody's said on Tuesday. Companies are now coming back to America. It has a unique identity plus millions of passionate riders.

Harley shifting production overseas to address European Union tariffs