In view of the increasing EU import duties on American goods Harley-Davidson Motor Company decided to partially shift production of motorcycles for the European market outside of the United States.
Import tax from the US totaling $3.4 billion became the EU’s response to the taxation of the property of the trump tax on imports of European steel and aluminium.
According to the statement Harley-Davidson, in 2017 in the European Union, has sold about 40 thousand motorcycles. More the company sold only in the United States.
A tax on bikes has increased from 6 to 31%. This means that in EU the price of 1 motorcycle will increase on average by $2.2 thousand.
Motorcycles Harley-Davidson have traditionally been produced in the United States, that has always been considered a guarantee of the highest quality, which is so appreciated by bikers and riders all over the world. As stated in the company, the expansion of foreign production — the only way to maintain affordable prices for European customers.
Shares of Harley-Davidson, like other corporations, which hit the new tariffs on steel and aluminium, fell by almost 3%. The company said that for the partial transfer of production of motorcycles abroad will take up to 18 months.
Meanwhile, the administration trump’s plans to restrict the participation of Chinese capital in U.S. technology companies and hi-tech production, says the Wall Street Journal.
Early this year Harley-Davidson said they would move much of their plant operations in Kansas City to Thailand. That was long before the Tariffs were announced. Hence, they were just using Tariffs/Trade War as an excuse. Shows how unbalanced & unfair trade is, but we will fix it…..
— Donald J. Trump (@realDonaldTrump) June 26, 2018
«This year Harley-Davidson said it will take bofmost of its production from Kansas city to Thailand. This was long before [the introduction of] tax [on imports], they just used duty / trade war as the excuse. It demonstrates how the unfair trade, but we will,» said trump on Twitter today.
The President also added that if the company wants to import their goods to US, she will have to pay high tax.
A Harley-Davidson should never be built in another country-never! Their employees and customers are already very angry at them. If they move, watch, it will be the beginning of the end — they surrendered, they quit! The Aura will be gone and they will be taxed like never before!
— Donald J. Trump (@realDonaldTrump) June 26, 2018
«[Vehicle] Harley-Davidson never have to collect in another country — never! — the President wrote in his last tweet — Their employees and customers and are so angry with them. If they move, no doubt, this will be the beginning of the end they gave up, they ran away. They will lose face, and will pay more taxes than ever!»
