Trump rips Harley-Davidson as company eyes overseas growth

Harley-Davidson To Move More Production Oversees Amid US-EU Trade Tensions

Harley-Davidson will outsource some production due to retaliatory tariffs

The European Union imposed tariffs on a range of USA products in response to similar levies that President Donald Trump put on steel and aluminum from Europe.

Trump's tweet, sent Tuesday morning, sends a clear message that his administration plans on penalizing companies that shift production as a result of ongoing trade battles between the USA and foreign nations.

"Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag", he said on Twitter.

"Look, I was never in favor of some of these steel and aluminum tariffs in the first place", Moore demurred. The company said it expects the tariffs will result in an increased cost of about $2,200 per average motorcycle exported from the U.S.to Europe. "Harley must know that they won't be able to sell back into United States. without paying a big tax!" he said in another tweet.

"Harley-Davidson's announcement today is the latest slap in the face to the loyal, highly-skilled workforce that made Harley an iconic American brand", IAM president Robert Martinez said in a statement, adding that the decision to close down the Kansas City, Missouri plant was made before the European Union announced its tariffs.

Donald Trump has promised that his sweeping global tariffs would bring jobs back to America.

In January, Harley-Davidson said it would close a plant in Kansas City, Missouri, due to a sharp drop in US demand for its motorcycles, but said it would consolidate work done there into its plant in York, Pennsylvania.

The president also claimed company announced plans earlier this year to move production to Thailand and was using the tariffs as an excuse to justify the decision.

President Trump will reportedly announce a new set of restrictions on trade with China this week. "Hence, they were just using Tariffs/Trade War as an excuse", Trump tweeted. "Harley-Davidson is a true American icon, one of the greats ..."

When calculating the full-year impact from the European Union tariffs, Harley Davidson said it estimates the amount to be approximately $90 to $100 million. Harley maintains facilities in Australia, Brazil, India, and Thailand.

Trump warned the iconic American brand that any shift in production "will be the beginning of the end".

Trump, in March, instituted a tariff of 25 percent on steel and 10 percent on aluminum imports. Europe is a critical market for Harley-Davidson.

Harley-Davidson's reveal was followed by deep slides on Wall Street: Harley shares dropped almost 6 percent, while the Dow Jones industrial average plummeted.

Harley forecast the EU's retaliatory tariffs would cost the company $US90 million ($121 million) to $US100 million ($135 million) a year. "Trump ultimately wants a level playing field", Moore stuttered, never addressing the financial hit the company - and their shareholders who have already seen their stock plummet over the last week - would take by bowing to Trump.

That statement drew criticism from Eurasia Group president Ian Bremmer, who said on Twitter, "If the Germans started saying this about BMWs or the Japanese about Toyotas, that's a whole lot of Americans out of work". The Wisconsin-based motorcycle manufacturer says it plans to consolidate operations in York, Pennsylvania, the site of an existing plant where about 450 of the Kansas City plant's jobs will be moved.

"Therefore, Harley-Davidson will not raise its manufacturer's suggested retail prices or wholesale prices to its dealers to cover the costs of the retaliatory tariffs". We are opening up closed markets and expanding our footprint.

"Trump tweeted ".We are finishing our study of Tariffs on cars from the E.U.in that they have long taken advantage of the U.S.in the form of Trade Barriers and Tariffs. Shortly after taking office, the Trump administration pulled the United States out of the Trans-Pacific Partnership, a 2016 agreement made among 12 North American and Asian countries that lowered barriers to trade.

Republican Rep. Jim Sensenbrenner, whose Wisconsin district includes Harley's plant in Menomonee Falls, said the European Union has a long history of abusive trade practices but urged Trump to address abuses without harming jobs in the U.S.

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