Published On: Thu, Jun 28th, 2018

Trump Chides Harley-Davidson’s Decision to Shift Production Overseas

President Donald Trump criticized the motorcycle conglomerate Harley-Davidson over its decision to shift majority of its production to overseas plants in order to avoid European Union tariffs and threatens the company with big taxes if they move out of U.S.


In his recent tweets, the President of United States accused the motorcycle maker Harley-Davidson of using trade tariffs as an excuse to move out of U.S.

The company, on the other hand, claims that it started its plans to move production to Thailand as a result of Trump’s withdrawal from the Trans-Pacific Partnership.

Earlier this year, United States implemented new duties on steel and aluminum import. In response, EU increased the tariff from 6% to 31% on US imports, resulting in an ongoing Trade/Tariff War.
The European market is the biggest buyer of Harley-Davidson with nearly 40,000 motorcycles sold in the past year.

The company said it took the decision to lessen the substantial burden and avoid the threat, the new EU tariffs has put on international sales.

As a result of EU tariffs, Harley-Davidson will experience an average of $2,200 tax on each motorcycle exported from US, causing a staggering $45 million additional expense to the manufacturer.

Wisconsin based Harley Davidson plans to absorb the additional cost rather than pass it on to customers and consumers. The company has major assembly plants in Thailand, India, Brazil and Australia.

Presidents Trump continued to criticize the company accusing it of ‘waving the white flag’ even after he invited the executives to White House.

The President also threatened the company with major taxes if it leaves the US and insisted that EU has long taken advantage of tariffs and that everything will even out in the end. He ended his remark by admonishing the company to be patient and ‘it won’t take long’.

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