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President Trump on Tuesday lambasted one of his favorite American manufacturers, criticizing Harley-Davidson for his plans to move some of his motorcycle production overseas and threaten him with punitive taxes in return.
In a series of tweets on Tuesday, the president accused the Wisconsin-based company of "capitulating" in Mr. Trump's trade war with Europe. He told Republican lawmakers at a White House meeting that the move constituted treason, saying, "I've been very good with Harley-Davidson."
"If they move, look, it will be the beginning of the end – they surrendered, they resigned!" wrote on Twitter. "The Aura will be gone and they will be taxed like never before!"
The day before, Harley-Davidson announced that it would be relocating some of its overseas production in response to the new 31% EU tariff on its imported bikes, imposed in retaliation for the airline's tariffs. 39 steel and aluminum Mr. Trump.
Mr. Trump has clashed with US companies a staple of his presidency, previously attacking companies like Amazon and Carrier. In many cases, trade associations and trademark experts have advised companies to remain discreet when they have opposed Mr. Trump and wait for his attention to be diverted to another subject.
It's unclear whether this will be the case with Harley-Davidson, an iconic American brand that Mr. Trump has often celebrated. Last year, the president invited Harley-Davidson leaders to the White House, where he thanked the company for "building things in America". Her affinity for the company did not escape the European Union when she was looking for retaliatory targets.
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On Tuesday, the administration fought back against the European Union and other countries that imposed retaliatory tariffs, calling them "unfounded" and violating the rules of the World Organization Trade.
Robert E. Lighthizer, US Trade Representative, said in a statement that reciprocal tariffs imposed by Europe, Canada, Mexico and China "do a lot of damage to the multilateral trading system" and he promised " take all necessary measures ". American law and international rules to protect its interests. "
Earlier Tuesday, Mr Trump accused Harley of using the trade dispute as an excuse to send more jobs overseas, after the recent construction of a factory in Thailand. This suggestion echoed the sentiment expressed by one of the unions representing Harley workers.
Harley has expanded its Thai plant to lower existing rates in Asia, but has decided to move more production overseas in direct response to new European tariffs. Harley has not said where he will build bikes for the European market or how much jobs he could reduce in the United States as a result.
Mr. Trump also relaunched a threat he was throwing at corporations when he was running for president, warning Harley that he would pay a financial prize for moving manufacturing abroad. .
"Harley must know that he will not be able to sell in the United States without paying a big tax!" says in another tweet Tuesday.
While he was running in 2016, he repeatedly stated that when he was elected, he would be charging Ford a 35% tax on the cars he made in Mexico. and sold in the United States. He did not say what presidential authority would give him this power, and the warning on Tuesday seemed to misunderstand – or misinterpret – the fact that Harley would use his production facilities abroad to sell motorcycles in Europe, not in the United States.
[L'annoncedeHarley-Davidson[Harley-Davidson'sannouncement[L'annoncedeHarley-Davidson[Harley-Davidson’sannouncementrevealed the uncomfortable choices that companies face as they navigate the growing trade tensions.]
Overseas markets have become critical for Harley-Davidson as sales slow in the United States. The company recently announced plans to consolidate some of its US plants, including the closure of its Kansas City, Missouri plant, and the merger of its operations with York, Pennsylvania.
On Tuesday, employees at York Institution said they were supportive of Mr. Trump's concerns, but that they also understood the company's need to protect its results. financial. Many workers voted for Mr. Trump and still support him, but said the president, in his former business life, would do the same thing as Harley-Davidson to survive.
"Harley-Davidson is as American as apple pie, and the president understands that," said Sue Thomas, who holds various jobs at the York factory. "I think he's a little hurt, and those who fly away are disappointed because Harley-Davidson is an American treasure."
But Ms. Thomas added, "I know the president thinks that Harley-Davidson should work with him, but he's also a businessman, and I do not believe for a moment that he would not do it. that with his company. "
David Paige, an 11-year-old team engineer at Harley-Davidson, said that what was best for the long-term interests of the company was ultimately the best for him too.
"Harley does what Harley has to do to survive, and it's important to feed my family," said Paige.
The president's public attack on Harley is likely to further frustrate Republicans, who have been increasingly worried about the fallout from his trade war.
President Paul D. Ryan, a Republican from Wisconsin, said Tuesday that the company's move was a sign that unilateral tariffs were not working.
"I do not think tariffs are the right solution," Ryan said. "I think tariffs are essentially taxes, and what ends up happening is that rates go up or taxes go up."
Representative Jim Sensenbrenner, another Wisconsin Republican, urged Trump to take a more focused approach in his trade negotiations that would protect American workers and businesses.
"It is unfortunate that a company as strong in Wisconsin as Harley-Davidson has to bear the brunt of this trade dispute," he said.
And Senator Ben Sasse, a Republican from Nebraska who is a frequent critic of Mr. Trump, defended Harley's patriotism and condemned Trump's trade policy as a bad economy.
"This will pass like a Vespa in Sturgis," said Sasse, citing the scooter brand and South Dakota site of a large annual motorcycle rally. "The problem is not that Harley is unpatriotic – it's that the rates are stupid."
The company has remained quiet publicly since the announcement of its manufacturing decision in a public repository on Monday. The Harley-Davidson Twitter feed did not respond to Mr. Trump's concerns, and the company declined to make his general manager available for an interview.
At York's factory on Tuesday, a man who identified himself only as "the boss" delivered a statement reiterating the filing on Monday, which said the change of operations "represents the only sustainable option" for that the company makes its bikes accessible and accessible to European customers.
"Europe is a crucial market for Harley-Davidson," the statement said.
Alan Rappeport reported from Washington, and Stacy M. Brown from York, Pa.
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