President Trump believes that iconic American Harley-Davidson motorcycles cannot be made outside the country as the company caught in the US – EU trade war moves the production overseas.
Employees of Harley-Davidson and buyers of motorcycles produced by the company are already “very angry” in connection with the company’s plans to transfer production from the US to other countries, US President wrote on Twitter.
“A Harley-Davidson should never be built in another country – never! Their employees and customers are already very angry at them. If they move, watch, it will be the beginning of the end – they surrendered, they quit!,” he stressed. The president warned that in case of transfer of production outside the US the company “will be taxed like never before!”
According to the WSJ, Harley-Davidson has factories in Brazil, India and Australia.
The astounded public learned about Harley-Davidson plans to partially transfer the production of its motorcycles outside the US from a securities filing at the US Securities Commission maded public on June 25. The reason is the tariffs that the EU imposed on American goods in the flaring up trade war. Harley-Davidson said that its motorcycles will be taxed at a rate of 31% (previously 6%) which will drive the price of each motorcycle by $ 2.2 thousand.
In annual terms, the expenses of the Milwaukee company will grow by $ 90-100 million, Harley-Davidson said.
“Expanding international production to alleviate the EU tariff burden is not our preference, but it’s the only sustainable option we have to make motorcycles available and affordable to EU customers,” Harley spokesman Michael Pflughoeft said.
Trump said he was surprised and dismissed the tariff talk as a mere excuse.
“Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag,” he wrote in a tweet.
Harley’s stock fell 6% on Monday to $41.57.