Published: Wed, June 27, 2018
Markets | By Erika Turner

Here's Why Trump Tweeted About Harley-Davidson's Plant In Kansas City

Here's Why Trump Tweeted About Harley-Davidson's Plant In Kansas City

The EU's top trade official said the us knew it would face consequences if it put tariffs on European steel and aluminum imports, such as retaliatory tariffs on American manufacturers like Harley-Davidson. "In 2017, almost 40,000 riders bought new Harley-Davidson motorcycles in Europe, and the revenue generated from the European Union countries is second only to the U.S.".

In a series of tweets Tuesday morning, Trump said Harley is using the European retaliatory tariffs as "an excuse" for moving manufacturing overseas.

In a Securities and Exchange Commission filing, Harley-Davidson said the 31 percent tariff, up from 6 percent, would add about $2,200 to the cost of each motorcycle - and the impact could reach $100 million per year.

In his Tuesday morning series of Twitter posts, Trump wrote that "Harley must know that they won't be able to sell back into the USA without paying a big tax!".

Long term, Harley will attempt to offset the tariffs by moving production of motorcycles destined to European countries to its facilities outside the U.S., like Brazil, Thailand, Australia, and India.

Donald Trump has promised that his sweeping global tariffs would bring jobs back to America.

Harley-Davidson announced it will move some production of European motorcycles to the EU to avoid tariffs. In January, it said it would consolidate its Kansas City, Missouri, plant into its York, Pennsylvania, facility. This was before the tariffs were announced.

Trump, however, deflected blame today via a tweet, citing taxes as being nothing more than an excuse on the part of Harley Davidson. "That means we have to make America the best country on Earth to do business, and that's what we're in the process of doing". Harley-Davidson has denied that. These tariffs, which became effective June 22, 2018, were imposed in response to the tariffs the US imposed on steel and aluminum exported from the European Union to the U.S.

Turkey’s election reveals the durability of nationalism
If the HDP exceeds the 10 percent threshold of votes needed to enter parliament, it will be harder for the AKP to get a majority. Andalou said the party had won 42 percent of votes with 99 percent counted, projecting a total of 293 seats.

The EU said that if the US retaliates, it's prepared to slap additional tariffs on 160 USA products worth roughly $4.3 billion.

The EU responded to U.S. tariffs on steel and aluminum, but hitting a series of American products with import taxes, including motorcycles, bourbon and blue jeans. "I fought hard for them and ultimately they will not pay tariffs selling into the E.U".

Harley-Davidson bikes are lined up at a bike fair in Hamburg, Germany, February 24, 2017. He said the administration has been "getting other countries to reduce and eliminate tariffs and trade barriers that have been unfairly used for years against our farmers, workers and companies". At the high end, the additional cost from the European tariffs would represent a 2 percentage point reduction in Harley's operating profit margin from past year.

European Union officials, meanwhile, suggested Trump had only himself to blame for the falling-out with a company he had previously hailed as "a true American icon". He had even blamed India, among other countries, for having restrictive tariffs that affected sales of companies like the American bike maker. In April, Harley estimated that Trump's tariffs on imported metal would inflate its production costs by somewhere between $15 and 20 million.

On Monday, the vice president of the EU's governing body said that Europe and China will form a group aimed at updating global trade rules to address technology policy, government subsidies and other emerging complaints in a bid to preserve support for worldwide commerce. The EU has responded in kind, levying a tariff on several American products.

Wisconsin's elected leaders said the decision pointed to the need to expand markets.

The president has held up the motorcycle maker as an example of a USA business harmed by trade barriers in other countries.

Ryan says the USA should counter unfair trading practices, but says, "There are better tools than tariff increases".

Like this: