Wisconsin's Harley-loving governor put in bind with Trump

Harley-Davidson To Move More Production Oversees Amid US-EU Trade Tensions

Harley-Davidson says it will begin to shift the production of motorcycles headed for Europe from the U.S. to factories overseas as it faces spiralling costs from European Union tariffs.

The company, which sold almost 40,000 motorcycles in Europe previous year, said it planned to absorb those costs rather than pass them on to customers and risk damaging sales. "The Aura will be gone and they will be taxed like never before!"

"Early this year Harley-Davidson said they would move much of their plant operations in Kansas City to Thailand", Trump continued.

Harley-Davidson Inc. will not be raising the retail or wholesale prices of motorcycles to combat the European Union tariffs, the company has announced.

An enraged Trump railed against the company in a series of tweets, accusing it of waving the white flag and threatening punitive taxes if it bolted from the US.

The EU tariffs on $3.4bn worth of United States products are retaliation for duties the Trump administration is imposing on European steel and aluminum.

"Even before the EU's announcement, Harley made the decision to close its plant in Kansas City and has manufacturing facilities in India and Brazil".

The company sold almost 40,000 motorcycles in the Europe Union past year, with sales second only to those in the U.S.

Such a hike in price "would have an immediate and lasting detrimental impact" to Harley-Davidson's business in the region, the company says.

"The company built its reputation and image by making motorcycles here, and if the company wants to continue to market itself as an iconic American brand both at home and overseas, it needs to focus on U.S. production", he added.

"We don't want to punish, but that is the unfortunate effect, that (US companies) will put pressure on the American administration to say hey, hold on a minute, this is not good for the American economy", EU Trade Commissioner Cecilia Malmstrom said at a news briefing.

Shares of Milwaukee-based Harley-Davidson fell 46 cents, or 1.1 percent, to $41.11 on Tuesday.

"The president's trade and economic policies have been a huge benefit to the American economy, and this includes the creation of over 300,000 manufacturing jobs".

Harley said ramping up production overseas could take at least nine to 18 months.

"I expect many other companies will be forced reluctantly to move production as Harley has done in order to maintain their viability".

It is worth mentioning that Harley could make the decision to shift production because it had chosen, in 2017, to open a new manufacturing plant in Thailand.

Harley-Davidson, facing rising costs from new tariffs, will begin shifting the production of motorcycles heading for Europe from the U.S.to factories overseas.

The company's press office did not respond to a request for comment on the criticism from Trump and Renacci. "No, it's not surprising at all", said Scott Lincicome, an worldwide trade attorney and an adjunct scholar at the Cato Institute who has been critical of Trump's approach. Union officials have said those jobs are going to Thailand, something Harley-Davidson denies.

In 2017, almost 40,000 riders bought a Harley-Davidson motorcycle in Europe, accounting for more than 16% of the company's sales previous year.

The same day, Trump reiterated his intention to slap new tariffs on European cars and announced a specific number: 20 percent.

The company will provide more details of the financial implications of retaliatory European Union tariffs and plans to offset their impact on July 24 when its second-quarter earnings are due, the filing said.

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