Harley-Davidson Inc. announced Monday its intention to transfer the production of motorcycles destined to the European Union to its international factories, in response to EU-imposed tariffs on its bikes.

A few hours after the announcement, President Donald Trump issued a tweet that reprimanded the world's largest maker of heavyweight motorcycles.

"Surprised that Harley-Davidson, of all the companies, would be the first to brandish the white flag, I fought for them and eventually they will not pay the EU tariffs, which hurt us on Trade, $ 151 billion Taxes just an excuse Harley – be patient, "tweeted Trump.

Tuesday morning, Trump tweeted: "A Harley-Davidson should never be built in another country – never, their employees and their customers are already very angry at them, if they move, look, it will be the beginning from the end – they surrendered, they will leave! Aura will be gone and they will be taxed like never before!

Harley said that the impact of the 31% tariffs, up from 6% previously, could be $ 100 million a year for the company, or about $ 2,200 per motorcycle.

"Harley-Davidson believes that the dramatic increase in costs, if passed on to its dealers and retail customers, would have an immediate and lasting negative impact on its operations in the region, reducing customer access to Harley-Davidson products and harming the durability of its dealers. "companies," said the company in a filing of the Securities and Exchange Commission.

About 16% of all new Harley-Davidson motorcycles are sold in Europe, a figure that has remained stable and is the second-largest business only in the US market. About 43% of the company's bikes are sold outside of the United States, and Harley's is set as a goal to bring them to around 50%.

"Europe has recently performed well, with growth in healthy retail sales," said Sharon Zackfia, an analyst with the motorcycle industry at William Blair Co.

The opportunities for Harley in Europe are significant, but competition from European and Japanese motorcycle manufacturers that are not subject to the EU's high tariffs on new US bikes on Friday is just as important.

"It's hard to run a business when the rules keep changing," said Craig Kennison, an industry analyst at Robert W. Baird & Co., based in Milwaukee.

Harley plans to open a motorcycle assembly plant in Thailand this year because the rate on motorcycles assembled in the United States is about 60% in Thailand, according to the company.

Harley already has assembly plants in India and Brazil.

The Street-model motorcycles of the company are manufactured in India for Italy, Spain and Portugal.

"Europe is a critical market for Harley-Davidson," the company said, adding that it has sold nearly 40,000 bikes in 2017.

The increase in production at international factories would require an "additional investment" and would take at least nine to 18 months, according to Harley.

It's still unclear what impact the changes might have on the company's factories in Wisconsin, where he builds motorcycles engines, and in Pennsylvania, where he assembles complete bikes.

"We feel that Harley-Davidson appreciates its US-based manufacturing presence and is reluctant to make any significant changes," Kennison said.

"We think the bikes sold in America will be made in America, which is not negotiable, I suppose," he added.

But a union of Harley employees is complaining about the company's plan to close its plant in Kansas City, Missouri, while opening an assembly plant in Thailand.

RELATED: In Washington, the union tears up Harley-Davidson for the closure of the Kansas City plant when it opens in Thailand

It is hard to accept in Kansas City, where the company has assembled some of its most popular motorcycles since 1997 and employs around 800 people.

The union criticizes Harley for investing in Thailand while receiving tax cuts under Trump's new tax plan.

"The announcement of Harley-Davidson today is the latest slap at the highly-skilled and loyal workforce that has made Harley an iconic American brand." Harley said Friday the publication of the tariffs from the EU on Harley motorcycles and the company will implement plans to further relocate production, "said Robert Martinez, president of the International Association of Machinists and Aerospace Workers.

"This latest initiative fits into Harley's earlier decisions to open factories outside of North America," said Martinez.

The Machinists' Union also represents Harley-Davidson workers in York, Pennsylvania.

Harley says he's moving work from Kansas City to York, creating about 400 more jobs at this plant.

The Thailand factory will assemble bicycles from components produced in the company's US facilities, according to Harley.

The company says it will provide more details on plans to mitigate the impact of EU tariffs during the company's second quarter earnings conference call, the company said on Wednesday. July 24th.

"Harley-Davidson will not raise prices for dealerships or customers but will bear the significant impact of these short-term retaliatory rates," said Harley spokesman Michael Pflughoeft in a statement. email to Milwaukee Journal Sentinel.

"The only long-term solution is to implement a plan to transfer US production to our international operations in order to avoid the tariff burden." We hope the US and EU governments will continue to work together on these tariffs, "Pflughoeft said.

Last week, the European Union began to roll out tariffs on US imports, including bourbon, peanut butter and orange juice. EU tariffs on US goods worth $ 3.4 billion are retaliatory measures for Trump 's duties on steel and steel. aluminum in Europe.

RELATED: Rates on Harley-Davidson motorcycles, cranberries and aluminum for boats

Trump used Harley-Davidson as an example of an American company that is suffering the effects of trade barriers. Still, Harley has always warned against pricing, saying that they would have a negative impact on sales.

"Increasing international production to lighten 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 viable business in Europe, "the company said.

Governor Scott Walker told reporters that he thought the best way to protect companies such as Harley-Davidson was to improve foreign investment in the United States and reduce rates. This puts Walker in disagreement with the President, who has intensified tariff discussions in recent weeks.

"The ultimate goal if we can get there would be to have no tariffs or so little tariffs on anything," Walker told reporters at the University of Wisconsin-Madison. .

"Because it's not just the tariffs that the current administration has put in place, it's tariffs for years … that's what I'm going to defend." If we can come up with a level playing field, on a number of products out there. "

Despite a long list of hundreds of US products that were under study for EU tariffs, EU officials have specifically focused on motorcycles, jeans and more. and bourbon.

"It's not a coincidence, these products are largely manufactured in districts and states represented by House Speaker Paul Ryan, minority leader Nancy Pelosi and Senate Majority Leader Mitch McConnell" said analyst James Hardiman at Wedbush Securities.

"The Mexican government has also announced retaliation plans with comparable sanctions on US products," Hardiman said, including pork, fruit and cheese.

Harley in Europe

Even before the latest tariffs, imposed on certain US products in response to the submission of steel and aluminum to foreign import duties, the Harley were more expensive abroad .

The entry-level bike from Harley in France currently costs 7,490 euros ($ 8,766), according to the Reuters news agency.

"You have to be easy enough to buy one," said Ian Malone, editor of Biker and Bike magazine in the UK.

The rates "really put a big hurdle on people who want to walk on a Harley … I think it will be very difficult for them," he added.

There are more German, Italian and Japanese motorcycles than Harleys in Europe, but the brand echoes the people who associate it with American culture and expressionism.

"A trade war does not help, but you will not find a lot of committed Harley riders who would move to another brand just because of the price," Kennison said.

Graham Field, a London motorcycle journalist, has an old Harley with a big monkey-handlebar handlebars.

"It's the bike I dreamed of when I was 10 years old, with Easy Rider posters on my wall," Field said.

"Now it's a reality in my shed."

European motorcycle manufacturers BMW, Ducati and Triumph manufacture or assemble a lot of their bikes in Asia and South America, and they buy components from Asia.

Harleys made in Brazil, India or Thailand could be accepted very well in Europe, according to some motorcycle enthusiasts abroad.

Europeans are "more tolerant of the idea of ​​a global village where the best and most economical components come from around the world, they are not as insular and protectionist as Americans," said Mark Hinchliffe. , editor of Motorbikewriter.com.

From July 5 to 8, Harley-Davidson will put its European energy at the heart of the 115th anniversary of Prague, the capital of the Czech Republic.

It is expected that the gathering of bikers will attract 100,000 people from about 70 countries, many of them browsing the streets of the city against a backdrop of medieval architecture and castles. 600 years old.

The event is part of Harley's effort to build ridership in Europe, where people tend to favor powerful and agile motorcycles well suited to the city's winding roads and congested streets.

It's very different to ride in the United States, where a big touring bike, like the Harley Electra Glide, is well suited to long straight open stretches.

"There is a difference of style in the bikes born from the environment," said Robert Pandya, an American motorcyclist, originally from Texas, who drove a lot abroad.

This is not the first time that Harley-Davidson faces barriers to international sales.

Years ago, Japanese motorcyclists had to pass a special exam if they wanted to drive big touring bikes like Harleys. One of the tests was to cross a balance beam. Only about 2% of runners passed the test.

In 2005, Japan repealed a law prohibiting motorcyclists from transporting passengers on major motorways. This helped boost sales of Harley-Davidson.

Patrick Marley of Sentinel Journal staff contributed to this report.

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