Trump warns Harley-Davidson against moving production out of the US

Trump warns Harley-Davidson against moving production out of the US

Trump warns Harley-Davidson against moving production out of the US

The poster boy of US President Donald Trump's trade war - Harley-Davidson - just embarrassed him by deciding to take part of its manufacturing out of the US.

The President also predicted the company's demise - "they surrendered, they quit!" - and said their "Aura will be gone".

Harley-Davidson announced in January plans to shutter a Kansas City, Missouri, assembly plant, citing market conditions, about a month before Trump said he'd move forward on threats to implement tariffs on imports of aluminum and steel.

The American motorcycle maker sells almost 40,000 new motorcycles a year in Europe, which accounts for 16 percent of the company's overall sales and is the biggest market for it outside of the US. He could be referring to the tariffs he is attempting to unilaterally impose on foreign imports. And it has announced tariffs on $50 billion in Chinese goods - a tariff list that could swell to $450 billion if Beijing refuses to back down and counterpunches with retaliatory moves.

"Harley's announcement came as an unintended effect of the Trump administration's efforts to protect American jobs by levying tariffs, including duties on imports of European steel and aluminum", CNBC noted on Monday.

The impact on USA workers because of Harley-Davidson's decision was not immediately clear.

Mr Trump tweeted: "I fought hard hard for them and ultimately they will not pay tariffs selling to the European Union, which has hurt us badly on trade, down $151 Billion. Harley must know that they won't be able to sell back into USA without paying a big tax!", he said.

A group from Harley-Davidson met with Trump at the White House a year ago.

Harley acknowledged it has already been moving some production abroad, but it says moving more production overseas is its "only sustainable option" in the wake of the growing trade war. "Hence, they were just using Tariffs/Trade War as an excuse", Trump said on Twitter.

Moving production overseas is expected to require nine to 18 months, meaning that in the near term the company will absorb the costs of higher European Union tariffs.

"Trump tweeted ".We are getting other countries to reduce and eliminate tariffs and trade barriers that have been unfairly used for years against our farmers, workers and companies.

Harley-Davidson won't face any additional tariffs in India, as had been previously rumored. But the firm said Monday that it was shifting more production overseas specifically to blunt the impact of the tariffs imposed by Europe. Martinez added. "Does Harley even understand what "Made in America" means?"

In another tweet, Trump said the company could face a "big tax". Trump said on Twitter Tuesday.

The Trump administration has started fights with trading partners around the world, imposing tariffs on imported steel and aluminum, provoking retaliation from close USA allies including the European Union, Canada, Mexico and Turkey.

In another tweet aimed at Brussels, Mr Trump warned the European Union that the U.S. was close to concluding a study on tariffs on auto imports. "The best way to help American workers, consumers, and manufacturers is to open new markets for them, not to raise barriers to our own market".

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