Trump says Harley-Davidson's problems aren't his fault

Devin Lawrence
June 26, 2018

"A Harley-Davidson should never be built in another country - never!"

American President Donald Trump had frequently embraced the firm as an emblematic USA industrial company, but Harley-Davidson's decision to move some work overseas to avoid retaliatory European Union duties left him disappointed. "If they move, watch, it will be the beginning of the end - they surrendered, they quit!"

In the filing, Harley Davidson says they chose to move production because the cost increase "would have an immediate and lasting detrimental impact to its business in the region".

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

Republican Sen. Ben Sasse, a vocal critic of the president's previous tariffs announcements, jumped to Harley's defense after its announcement Monday. But Trump says that's just an excuse.

The EU tariffs went into effect Friday, increasing the cost of a US-made motorcycle by $2,200.

"When I had Harley-Davidson officials over to the White House, I chided them about tariffs in other countries, like India, being too high. Harley must know that they won't be able to sell back into USA without paying a big tax!".

Late Monday afternoon President Trump tweeted, "Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag". Trump wrote in one tweet.

It follows Brussels decision to retaliate against Mr Trump's tariffs.

Trump recently imposed steep tariffs on aluminum and steel imported from Canada, Mexico and Europe in his bid to level the trade playing field and reduce trade deficits between the USA and its trade partners.

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Harley-Davidson won't face any additional tariffs in India, as had been previously rumored. We are opening up closed markets and expanding our footprint. He has suggested slapping a 25% levy on European Union vehicle imports.

Trump remained focused on the most recent round of tariffs, insisting that Europe had "long taken advantage of" the U.S., but that: "In the end it will all even out - and it won't take very long!" In the end it will all even out - and it won't take very long!

Lovely said Harley and other companies face retaliatory tariffs in Europe and elsewhere if they try to export products.

"I fought hard for them and ultimately they will not pay tariffs selling into the European Union, which has hurt us badly on trade, down $151 Billion. Taxes just an excuse - be patient!"

The E.U. Friday instituted almost $3.3 billion worth of taxes on imports from the United States, including Harley-Davidson motorcycles, in response to the Trump administration's 25 and 10 percent tariffs on steel and aluminum, respectively, imposed in late May.

Harley Davison will shift production to worldwide facilities, saying the move will take nine to eighteen months.

"It believes that works out to be about $2,200 (£1,650) per bike it exports from the U.S. to the EU".

The company estimated the cost for the remainder of 2018 from the tariffs would range from $30 to 45 million.

The company said in a government filing Monday that it may locate some production outside the response to European retaliation for the president's tariffs on imported metals.

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