The company says it's doing so because of tariffs it's facing in a trade dispute between the USA and the European Union. He added: "The Aura will be gone and they will be taxed like never before!" The EU's tariffs on motorcycles were put in place as a response to Trump's steel and aluminum tariffs. Harley must know that they won't be able to sell back into USA without paying a big tax! "Hence, they were just using Tariffs/Trade War as an excuse", he said. "And I think the people who ride Harleys aren't happy with Harley-Davidson, and I wouldn't be either".
Harley said Monday it's moving the production of motorcycles destined for Europe to factories in Thailand, India and Brazil in response to the European Union slapping a 31 percent tariff on motorcycles made in the U.S. He argued this was done in retaliation to the imbalance of trade that the USA has with major trading partners including China, the European Union and India, Press Trust of India reports. But Harley-Davidson had warned previous year against responding to foreign trade barriers with higher American tariffs, saying the levies could negatively impact sales. "Harley must know that they won't be able to sell back into USA without paying a big tax!"
It was unclear what taxes Trump was referring to, and why the company might have to pay them, since it will maintain production in the United States for US customers.
Harley-Davidson has denied a link between Kansas City and Thailand. On Monday, Trump said Harley waves "the White Flag" in the tariff fight - then continued to blast the firm on Tuesday.
Harley-Davidson executives met with President Trump at the White House previous year after President Trump canceled a visit to the company's headquarters in Milwaukee because protests had been planned.
"Europe is a critical market for Harley-Davidson", the company said, adding that it sold almost 40,000 motorcycles there in 2017.
The Thailand plant had no connection with the closure of the Kansas City facility, Harley-Davidson Chief Executive Matt Levatich told Reuters in an interview in February. Trump tweeted. "Their employees and customers are already very angry at them. As a rider and owner of a Harley-Davidson and as a former Harley-Davidson dealer, I condemn this decision and I strongly urge them to reconsider it". If they move, watch, it will be the beginning of the end - they surrendered, they quit!