Harley, which sold almost 40,000 motorcycles in Europe previous year, said it planned to absorb those costs rather than pass them onto customers and risk hurting sales. If they move, watch, it will be the beginning of the end - they surrendered, they quit! Mr. Trump is right that the company announced plans to build a plant in Thailand long before the current tariff escalation. He said taxes are just a Harley excuse.
"Increasing worldwide production to alleviate the European Union tariff burden is not the company's preference, but represents the only sustainable option to make its motorcycles accessible to customers in the European Union and maintain a viable business in Europe", the filing said. In addition to four US-based manufacturing facilities, Harley operates plants in Australia, India, Brazil, and Thailand. On a full-year basis, the company estimates the aggregate annual impact will be approximately $90 to $100 million.
Trump's sudden feud with Harley - an American manufacturer he feted at the White House just previous year - pitted a company driven by financial calculation against a businessman president who takes a deeply idiosyncratic and emotional view of global commerce.
"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", Robert Martinez Jr., president of the International Association of Machinists and Aerospace Workers, said in a statement.
Harley-Davidson earlier said making bikes for the European market would be transferred to other countries.
In turn, it also incentivizes firms to move their production overseas since other countries may have lower tariffs - or no tariffs - on the same intermediate product. And the great icon of Harley-Davidson is doing these tariffs and moving overseas and continues to move overseas. Does Harley even understand what 'Made in America means?'
Harley-Davidson plans to shift some motorcycle production away from the United States to avoid the "substantial" burden of European Union tariffs.
The American leader recently imposed steep tariffs on aluminium and steel imported from Canada, Mexico and Europe in his bid to level the trade playing field and reduce trade deficits between the U.S. and its trade partners.
PRESIDENT DONALD TRUMP: In fact, they proudly displayed five of their magnificent motorcycles made in the US on the front lawn of the White House. It also said it hoped to limit the cost from higher European Union tariffs to between $30 million to $45 million in the meantime. The company's announcement sparked a massive selloff in the stock market amid fears that other companies might follow suit, anxious about getting caught in the middle of Trump's trade war with Europe, Canada, Mexico, China, Japan, and possibly India. And on Monday, the company said it plans to move some of its operations overseas. "I don't like that, because I've been very good to Harley-Davidson, and they used it as an excuse".
Capra said no bikes manufactured overseas would be sent to the US for sale.
In an October re-election campaign launch video touting his record, Walker rides his Harley and asks the viewer, "Are you with me?"
Harley-Davidson's stock price sank as much as 2.6% after Trump berated the company on Twitter. The company announced plans to build the new factory in Thailand after the Trump administration withdrew from the Trans-Pacific Partnership, a trade agreement that would have lowered Asian tariffs on some of its motorcycles.
Donovan, however, says that the move makes flawless sense in the context of the new tariffs.