Payne: Harley-Davidson Using Trump's Tariffs as 'Cover' for Moving Production Overseas

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But Harley-Davidson said last week that European Union tariffs on motorcycles exported from the USA went from 6 to 31 percent, adding about $2,200 per average motorcycle exported from the us into European Union countries.

Trump says in tweets Tuesday that the company had already announced it was closing a Kansas City plant.

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. The EU tariffs on $3.4 billion worth of USA products are retaliation for duties the Trump administration is imposing on European steel and aluminum.

"Harley-Davidson maintains a strong commitment to USA -based manufacturing which is valued by riders globally", said the company.

Minutes later, Trump tweeted that the US was "expanding" its "footprint" in the global trade market, warning countries to "play fair" or "pay tariffs". The E.U. tariffs appear to be a direct response to the tariffs imposed by the Trump administration on European steel and aluminum.

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

Malmstrom spoke just hours after the announcement by the company founded in the early 1900s, which is also suffering under higher steel costs following tariffs enacted by US President Donald Trump.

The decision is a blow to the Trump administration, which has defended its imposition of tariffs on the European Union as part of a strategy to boost jobs in the US.

Trump, however, deflected blame today via a tweet, citing taxes as being nothing more than an excuse on the part of Harley Davidson. "Harley-Davidson is a true American icon, one of the greats ..."

FBN's Jeff Flock discusses how Harley-Davidson is moving some of its production overseas.

In recent years, it opened plants in Brazil and India. But most of its motorcycles sold in Europe are now manufactured in the USA, he noted in a research report.

And, on top of everything else, Trump himself has threatened to retaliate against Harvey for moving some of their production out of the country.

These European Union tariffs against specific USA products was meant as retaliation for Trump's imposition of tariffs against steel and aluminum imports from the European Union.

"They want to make 'em over there so they don't have to pay the tariffs to ship 'em", he said.

"It's unfortunate that such a strong Wisconsin company like Harley-Davidson has to bear the brunt of this trade dispute", Sensenbrenner said.

Harley-Davidson shares closed down 0.6 percent at $41.32, after falling almost 6 percent on Monday.

In fact, Trump has tried to threaten numerous countries with tariffs if they don't reduce tariffs and other trade barriers, but so far most of those discussions have ended in acrimony and frustration.

"Companies are now coming back to America".

The company estimated the cost for the remainder of 2018 from the tariffs would range from $30 to 45 million.

The Wall Street Journal reported that the Trump administration plans to impose curbs on Chinese investment in American technology companies and high-tech exports to China. These are not, however, the only layoffs associated with Donald Trump's European Union tariff negotiation strategy. Steel would incur a 25-percent tariff, while aluminum imports would see a 10-percent tariff.

Edward Alden, a senior fellow at the Council on Foreign Relations, said the decision undermined the president's claim that his "America First" trade stance would benefit manufacturing workers. That makes the market second to the US.

In the escalating trade war with the U.S., Brussels has a clear message for Donald Trump: It's not backing down.

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

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