Harley-Davidson to build motorcycles destined for European Union outside of U.S.

But Trump may be mistaken about the company's Thailand plant.

One day after the Wisconsin-based company said it was planning to shift some manufacturing overseas due to the European Union's tariffs in retaliation for U.S. duties, Trump accused Harley-Davidson of appropriating the trade war as an "excuse" for the move. "Hence, they were just using Tariffs/Trade War as an excuse", he tweeted. "Their employees and customers are already very angry at them", he wrote on Twitter.

In response to Harley-Davidson's proposed move, President Trump expressed his disapproval on Twitter: "Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag. Harley must know that they won't be able to sell back into United States. without paying a big tax!" he said in another tweet.

The Thailand plant had no connection with the closure of the Kansas City facility, Harley-Davidson Chief Executive Matt Levatich told Reuters in an interview in February.

At the time, the company said it was moving manufacturing there to avoid a different tariff: this one being the 60% duty levied on Thai imports.

As a manufacturer of big motorcycles, Harley-Davidson is one of a handful of brands that are recognizable symbols of America's self-image.

U.S. motorcycle sales peaked at more than 1.1 million in 2005 but then plummeted during the recession. "We want to intensify the dialogue with the U.S. House and the Senate", said Bernd Lange, chair of the European Parliament's trade committee.

Harley-Davidson representatives did not immediately return a request for comment.

Here are the facts about Harley-Davidson and trade.

The action comes in response to tariffs the European Union imposed on USA -made motorcycles.

It was also unclear what he was referring to in this post.


Its Kansas City factory closure isn't tied to shifting jobs overseas.

In January, the company announced that it would close a plant in Kansas City, Missouri, as part of a consolidation plan after its motorcycle shipments fell to their lowest level in six years. Daimler produces vehicles in the U.S.

John Lowery, a sales manager with Battlefield Harley-Davidson in Straban Township, Adams County, said he isn't that concerned, since the move involves only production of Harley's sold overseas.

Harley-Davidson said that shifting targeted production from the United States to worldwide facilities could take at least nine to 18 months to be completed.

But the tariffs probably hastened Harley's exit.

U.S. president Donald Trump has used Harley-Davidson as an example of a United States business that is being harmed by trade barriers. "We have been fighting tariffs for the 21 years I have been employed with the company". He threatened to hit the company with an unspecified tax if it attempted to sell motorcycles made outside the US back into the country. "What ends up happening is you get escalating tariffs or escalating taxes". "Most global trade is still in manufacturing, and the combination of the steel and aluminum tariffs, the coming China tariffs, and the various retaliatory actions are going to increase costs for many manufacturers", Alden said.

Trump's attacks were factually incorrect when he accused Harley-Davidson Inc of using his trade war with the European Union as an excuse to move production overseas.

"The president's trade and economic policies have been a huge benefit to the American economy, and this includes the creation of over 300,000 manufacturing jobs".

Harley-Davidson is struggling with big issues in its home market.

The company employed about 2,100 people at manufacturing plants in the USA at the end of previous year. Changing demographics like aging baby boomers are to blame, but Harley-Davidson also has failed to attract younger consumers.

Harley-Davidson now has overseas manufacturing plants in Australia, Brazil and India.


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