President Donald Trump threatened Harley-Davidson with severe taxes on Tuesday, as the Wisconsin-based motorcycle company announced it would move some production overseas to avoid tariffs that the European Union imposed in response to Trump's trade measures.
Trump accused Harley-Davidson of surrendering a “white flag” in the trade war, and said the iconic American motorcycle company would lose its “aura” if bikes were produced overseas.
"If they move, watch, it will be the beginning of the end -- they surrendered, they quit!" he wrote. "The Aura will be gone and they will be taxed like never before!"
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! The Aura will be gone and they will be taxed like never before!
— Donald J. Trump (@realDonaldTrump) June 26, 2018
Harley-Davidson announced the move to shift some production overseas after Trump imposed tariffs on foreign steel and aluminum. The European Union responded with a 31 percent tariff on exported bikes --costing the company roughly $100 million per year, or $2,200 per motorcycle, The Washington Post reports.
The EU tariffs target iconic U.S. products, including blue jeans and bourbon, in retaliation against new U.S. tariffs on imported steel and aluminum.
Early this year Harley-Davidson said they would move much of their plant operations in Kansas City to Thailand. That was long before Tariffs were announced. Hence, they were just using Tariffs/Trade War as an excuse. Shows how unbalanced & unfair trade is, but we will fix it.....
— Donald J. Trump (@realDonaldTrump) June 26, 2018
....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. We are opening up closed markets and expanding our footprint. They must play fair or they will pay tariffs!
— Donald J. Trump (@realDonaldTrump) June 26, 2018
....When I had Harley-Davidson officials over to the White House, I chided them about tariffs in other countries, like India, being too high. Companies are now coming back to America. Harley must know that they won’t be able to sell back into U.S. without paying a big tax!
— Donald J. Trump (@realDonaldTrump) June 26, 2018
....We are finishing our study of Tariffs on cars from the E.U. in that they have long taken advantage of the U.S. in the form of Trade Barriers and Tariffs. In the end it will all even out - and it won’t take very long!
— Donald J. Trump (@realDonaldTrump) June 26, 2018
Harley-Davidson has not announced where it will build its bikes for the European market, or how many U.S. jobs might be lost as a result, the New York Times reports.
The company itself warned on Monday that tariffs could end up hurting U.S. jobs, and moving production overseas was "the only sustainable option to make its motorcycles accessible to customers in the EU and maintain a viable business in Europe."
Cox Media Group
