Trump attacks Harley-Davidson after tariffs prompt production move

Trump attacks Harley-Davidson after tariffs prompt production move

Trump attacks Harley-Davidson after tariffs prompt production move

Harley said it plans to shift production of motorcycles for European Union destinations from the United States to its global facilities to avoid the tariff burden. "I feel really we are making progress...both China and the European Union believes in multilateralism and a rules-based world order", Katainen told CNBC. In response, most of its production for bikes sold in the European Union will be moved to Europe.

The EU's tariffs were a direct response to the Trump administration's tariffs placed against steel and aluminum exports from Europe. According to H-D's data, the manufacturer sold almost 40,000 bikes in Europe in 2017, its highest share of overall deliveries since 2011 and representing the second largest overall market around the world.

Sen. Jeff Flake (R-Ariz.), for example, warned over the weekend that he's prepared to oppose Trump's judicial nominees unless the Senate votes on legislation curtailing the president's power to unilaterally impose tariffs on other countries.

The EU implemented tariffs on just over $3 billion worth of USA goods in response to Trump's decision to hit steel and aluminum imports with tariffs.

Shares of Harley-Davidson fell 3 percent in pre-market trading Monday.

That will make each bike about $2,200 more expensive to export, Harley said.

US companies that make higher-value goods like motorcycles are now getting hit by export tariffs on their products and import tariffs on their raw goods.

The motorbike maker also forecast that the EU's retaliatory tariffs against United States goods would cost the company $90 million to $100 million a year.

Mid-Continent's orders for July are only 30 percent of what they were a year ago, and Skarich is afraid that many of his lost customers will never return.

The company said it expects the tariffs to result in incremental costs of $30 million to $45 million for the rest of 2018 and $80 million to $100 million on a full-year basis. A year after Trump pulled the USA out of the TPP in January 2017, Harley announced it would close its factory in Kansas City and consolidate production in York, Pennsylvania, eliminating about 260 jobs.

Rows of motorcycles are behind a bronze plate with corporate information on the showroom floor at a Harley-Davidson dealership in Glenshaw, Pennsylvania, April 26, 2017.

Harley said increasing production at its overseas worldwide plants would require incremental investments and could take at least nine to 18 months. Still, it's worth noting that the company has scaled back its American production lines in recent years in favor of opening a new plant in India, where motorbikes are highly sought, to get around a massive import tariff imposed there. Analysts at Moody's reckon a 25 percent tariff on imported vehicles and parts would be negative for most of companies including Ford Motor Co and General Motors Co. AshLee Strong says the best way to help American workers, consumers and manufacturers is to open new markets and not raise barriers.

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