Harley-Davidson Workers Praise Trump’s Tariffs ‘He’s Just Trying to Save American Industry’ Getty Images 26 Jun 2018 Menomonee Falls WI
28 June, 2018, 05:15
Harley-Davidson said Monday it was moving production of motorcycles sold in Europe from USA factories to facilities overseas because of retaliatory tariffs it faces in an escalating trade dispute between involving Trump's administration and the European Union.
The move isn't technically a shift of jobs from the U.S.to an worldwide locale.
Those tariffs came as a result of Trump's decision to impose steep duties on steel and aluminum imports Europe and elsewhere last month.
Local US media reported in May that a labour union for Harley-Davidson suggested some Kansas City jobs would move to Thailand - a move the company denied. On Monday, Trump said Harley waves "the White Flag" in the tariff fight - then continued to blast the firm on Tuesday. "Their employees and customers are already very angry at them", Trump said on Twitter, without providing any evidence. "Now they are trying to use the tariffs to excuse and deflect from that decision". Other companies are coming back where they belong!
In January, Harley-Davidson said it would close a plant in Kansas City, Missouri, due to a sharp drop in USA demand for its motorcycles, but said it would consolidate work done there into its plant in York, Pennsylvania.
The company is setting up an assembly plant in Thailand, a move it announced in May 2017, but that would put together bikes only for the growing Southeast Asian market. He added: "The Aura will be gone and they will be taxed like never before!"
"When I had Harley-Davidson officials over to the White House, I chided them about tariffs in other countries, like India, being too high".
S&P says it will resolve the credit watch after Harley's second-quarter earnings. Its last quarter sales fell by 12 percent in the USA but grew by about 7 percent in multiple continents, including Europe.
"I fought hard for them and ultimately they will not pay tariffs selling into the European Union, which has hurt us badly on trade, down $151 Billion". Trump said in a post on Twitter on Monday night.
Harley on Wednesday responded while sidestepping the controversy and not commenting on the president's tweets.
House Speaker Paul Ryan, whose district is home to some of Harley-Davidson's facilities, also pointed to the company as an American firm that would be a victor from tax reform.
The iconic motorcycle brand is the latest U.S. corporation to run afoul of the U.S. president, who has attacked Amazon as a tax dodger and scamming the U.S. Postal Service.
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The twin turbo unit produces 600bhp and 900nm, sending drive to all four wheels through an eight-speed automatic gearbox. The steering wheel and gearlever are also trimmed in Alcantara, while the headlining is made with Eliade cloth.
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Rising trade tensions and retaliatory tariffs could pose serious risks for Harley-Davidson, rating agency Moody's said on Tuesday. The company says it's doing so because of tariffs it's facing in a trade dispute between the USA and the European Union.
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