President Trump continues criticism of Harley Davidson on Twitter

Harley stung by tariffs shifts some production overseas

Harley stung by tariffs shifts some production overseas

Apart from being an American brand, Harley-Davidson is also a favorite of Trump's.

Trump warned the iconic American brand that any shift in production "will be the beginning of the end". "The Aura will be gone and they will be taxed like never before!".

President Donald Trump spent part of Tuesday morning tweeting about Harley-Davidson, specifically calling out the motorcycle giant's plant in Kansas City. A growing group of Congress members want to strip the president of his power to impose tariffs.

The president's ire at the Milwaukee-based company, famous for heavy motorcycles known as "hogs", had its origins in Trump's belief that he and his heartland supporters share a unique bond with the company. During the campaign he often talked about the company and as president he invited Harley executives to the White House.

In 2017 alone, almost 40,000 riders bought new Harley-Davidson motorcycles in Europe. One possible reason for the change of heart being the Harley-Davidson Street 500 and 750 are manufactured there. "I expect many other companies will be forced reluctantly to move production as Harley has done in order to maintain their viability".

Mike Gearhardt, who was a roundtable participant during Trump's Dayton campaign visit, said he could not have anticipated that Trump's "generalities and platitudes" that afternoon would translate into as much as $700,000 in lost profits this year for his employee-owned JBK Manufacturing. It did not respond directly to Trump. But those trade partners feel insulted by Trump and have made a decision to retaliate. All three fired back with reciprocal measures, including the high tariff that the European Union imposed on motorcycles last week.

A year after Trump pulled the US out of a 12-nation trade deal, the Trans-Pacific Partnership, in January 2017, Harley announced it would close its factory in Kansas City, Mo., and consolidate production in York, Penn., eliminating about 260 jobs. While some of the work from this plant will be shifted to its other plant in York, Pennsylvania, labour unions claimed at the time that another portion of the work would move to Thailand. It has factories in Brazil, India and Thailand.

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Harley-Davidson's announcement came by way of a Securities and Exchange Commission filing, which noted the tariffs would raise the cost of their products in the European market by about $100 million a year. "Hence, they were just using Tariffs/Trade War as an excuse".

Trump once argued on Twitter that "trade wars are good, and easy to win".

Harley-Davidson earlier said making bikes for the European market would be transferred to other countries.

The filing made no mention on the impact this would have on jobs for current Harley-Davidson employees in the USA, but noted that "Harley-Davidson will provide more details of the financial implications and plans to mitigate the impact of retaliatory European Union tariffs during the company's second quarter earnings conference call on July 24, 2018, at 8:00AM CDT". Companies are now coming back to America. But Trump says that's an excuse and threatened the company with a "big tax" if they move their plant.

Earlier this year the White House imposed a 25% tariff on steel and a 10% tariff on aluminium imports from several countries, including the 27-member EU.

"A Harley-Davidson should never be built in another country-never!" "I don't like that, because I've been very good to Harley-Davidson, and they used it as an excuse".

Trump further went on say: "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".

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