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EU's retaliatory tariffs on U.S. goods forces Harley-Davidson to move production overseas

2018-06-26 1 Dailymotion

Harley-Davidson says it's moving production of some of its motorcycles outside of the United States to avoid EU tariffs.<br />For more on this and other new stories making headlines around the world we turn to our Ro Aram… <br />Aram… The Trump administration's duties on European goods led to these retaliatory tariffs… and it seems to be backfiring on American companies…<br /><br /> That's right Mark… the EU imposed import duties of 25 percent on a range of American goods last week, including Harley-Davidson motorcycles.<br /> That was in response to Washington's tariffs on European steel and aluminum, which President Trump said was designed to protect U.S. jobs.<br />But now it seems those measures have produced unintended consequences. <br />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.<br />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.<br />The shift in production is expected to take about 18 months.<br />The Wisconsin-based company already has factories in Brazil and India, and is opening one in Thailand, while closing its Australian plant. <br /> 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. <br />President Trump had previously thanked Harley-Davidson for staying in America, while criticizing other firms for moving production outside the U.S. <br />But his trade disputes with other countries has even forced America's most iconic motorcycle manufacturer to look elsewhere. <br />Trump tweeted that he was "surprised" by Harley's decision, describing it as waving the white flag.<br />Europe is Harley's second biggest market outside the U.S. and sold almost 40-thousand motorcycles in the Europe last year. <br />

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