EU's retaliatory tariffs on U.S. goods forces Harley-Davidson to move production overseas
- 6 years ago
Harley-Davidson says it's moving production of some of its motorcycles outside of the United States to avoid EU tariffs.
For more on this and other new stories making headlines around the world we turn to our Ro Aram…
Aram… The Trump administration's duties on European goods led to these retaliatory tariffs… and it seems to be backfiring on American companies…
That's right Mark… the EU imposed import duties of 25 percent on a range of American goods last week, including Harley-Davidson motorcycles.
That was in response to Washington's tariffs on European steel and aluminum, which President Trump said was designed to protect U.S. jobs.
But now it seems those measures have produced unintended consequences.
Harley said Monday that the increased costs from the import taxes are threatening its international sales and could cost the firm 90 to 100 million dollars a year.
In order to offset the impact of retaliatory EU tariffs, Harley-Davidson said it would be shifting some production overseas, but didn't specify where.
The shift in production is expected to take about 18 months.
The Wisconsin-based company already has factories in Brazil and India, and is opening one in Thailand, while closing its Australian plant.
The firm said that if it stayed in the U.S. then it would result in an incremental cost of about 2,200 dollars per motorcycle sold in Europe.
President Trump had previously thanked Harley-Davidson for staying in America, while criticizing other firms for moving production outside the U.S.
But his trade disputes with other countries has even forced America's most iconic motorcycle manufacturer to look elsewhere.
Trump tweeted that he was "surprised" by Harley's decision, describing it as waving the white flag.
Europe is Harley's second biggest market outside the U.S. and sold almost 40-thousand motorcycles in the Europe last year.
For more on this and other new stories making headlines around the world we turn to our Ro Aram…
Aram… The Trump administration's duties on European goods led to these retaliatory tariffs… and it seems to be backfiring on American companies…
That's right Mark… the EU imposed import duties of 25 percent on a range of American goods last week, including Harley-Davidson motorcycles.
That was in response to Washington's tariffs on European steel and aluminum, which President Trump said was designed to protect U.S. jobs.
But now it seems those measures have produced unintended consequences.
Harley said Monday that the increased costs from the import taxes are threatening its international sales and could cost the firm 90 to 100 million dollars a year.
In order to offset the impact of retaliatory EU tariffs, Harley-Davidson said it would be shifting some production overseas, but didn't specify where.
The shift in production is expected to take about 18 months.
The Wisconsin-based company already has factories in Brazil and India, and is opening one in Thailand, while closing its Australian plant.
The firm said that if it stayed in the U.S. then it would result in an incremental cost of about 2,200 dollars per motorcycle sold in Europe.
President Trump had previously thanked Harley-Davidson for staying in America, while criticizing other firms for moving production outside the U.S.
But his trade disputes with other countries has even forced America's most iconic motorcycle manufacturer to look elsewhere.
Trump tweeted that he was "surprised" by Harley's decision, describing it as waving the white flag.
Europe is Harley's second biggest market outside the U.S. and sold almost 40-thousand motorcycles in the Europe last year.