Harley-Davidson will move more supervised production amid trade tensions between the United States and the European Union: NPR



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Harley-Davidson motorcycle engines are assembled in the Menomonee Falls plant, in the state of Wisconsin. EU tariffs encourage the company to move the production of certain motorcycles to the European market abroad.

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Harley-Davidson motorcycle engines are assembled in the Menomonee Falls plant, in the state of Wisconsin. EU tariffs encourage the company to move the production of certain motorcycles to the European market abroad.

Scott Olson / Getty Images

President Trump is unhappy with Harley-Davidson's plans to move motorcycle production that he sells to Europe overseas, in response to growing trade friction between the United States and Europe .

In a tweet sent this afternoon, Trump said that he was surprised that Harley-Davidson "of all the companies, would be the first to brandish the white flag.

EU officials last week imposed stiff tariffs on a wide range of goods manufactured in the United States and sold in the European Union. This decision follows President Trump's recent decision to impose tariffs on European imports.

In a Securities and Exchange Commission report on Monday, Harley-Davidson said EU tariffs "would have an immediate and lasting negative impact on its operations in the region."

The company achieved a turnover of $ 5.65 billion last year and Europe is its largest overseas market, with nearly 40,000 customers coming into the market. buy motorcycles in 2017.

European tariffs have risen from 6% to 31%, the company said. This increase will add an average of $ 2,200 to the cost of every motorcycle sold in the EU and would cost the company between $ 90 and $ 100 million a year, according to the filing.

"Increasing international production to ease the EU's tariff burden is not the company's preference, but represents the only sustainable option to make its motorcycles accessible to customers in the EU and maintain a viable business in Europe, "the statement said.

Trump has often praised the company, as a strong manufacturer with a long history of making motorcycles in the country.

But after the announcement today, Trump said the company should be patient, noting, "In the end they will not pay the sales rights in the EU, which made us badly on the trade, down $ 151 billion. "

The company did not say where production would be moved, or how many jobs could be affected, but said the move would take nine to eighteen months.

He also did not indicate which US plants would be affected. The company's US plants are in York, Pennsylvania, and Menomonee Falls, Wisconsin. She plans to close another plant in Kansas City, Missouri next year.

Union leaders representing factory workers say the company has gradually shifted its production to factories in India, Brazil and Thailand for some time.

Robert Martinez Jr., International President of the International Association of Machinists and Aerospace Workers, issued a statement after today 's announcement:

"The announcement of Harley-Davidson today is the latest slap at the hands of the loyal and highly skilled work force that has made Harley an iconic American brand Harley announced on Friday. 39; EU on Harley motorcycles and the company will implement more offshore production plans.

"Even before the EU announcement, Harley made the decision to close its Kansas City plant and has factories in India and Brazil, as well as a new factory in Thailand. 39, North America.

"Will Harley use any excuse to ship work overseas? Does Harley even understand what 'made in America' means?" "

Republican Senator Ben Sasse of Nebraska, who criticized the Trump administration 's reliance on tariffs against US trading partners, disputed the tweet of today' s. hui.

"This is going to pass like a Vespa in Sturgis The problem is not that Harley is unpatriotic – it's that the tariffs are stupid, they raise taxes on Americans, they do not work, and apparently we'll see more of that, "he said.

Harley-Davidson declined to comment beyond the filing released today.

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