Harley will take ‘big hit’ for moving production out of US, warns Trump

Washington: President Donald Trump has warned Harley-Davidson that it is going to take “a big hit” for moving some of its production overseas and said it was a shame that the company made the decision even though he got India to reduce import duties on the iconic motorcycles.

Trump said the Wisconsin-based motorcycle manufacturer risks losing American customers if it shifts production overseas amidst the tit-for-tat tariff war with the European Union (EU).

“I have feeling that maybe Harley, I think they’re going to take a big hit. I just think it’s a great American product. Our people have more pride then they used to have. I really believe that Harley’s going to take a (hit)– the people that are buying Harley-Davidson, they don’t want it built in another country,” Trump told Fox News.

Harley-Davidson has announced that it is moving some of its production overseas to avoid tariffs on bikes sold in the EU. Trump’s decision to levy tariffs on steel and aluminium from the 28-member bloc and other countries triggered the move. Trump cautioned against Harley-Davidson moving overseas, saying, “I think that Harley is an American bike. It’s an American motorcycle and they should build them in this country.” He accused the American motorcycle maker of using tariffs as an excuse to produce more bikes overseas. “I think I taught them more about tariffs than I could ever learn,” Trump said.

EU tariffs will cost $2,200/motorcycle

  • Harley Davidson is the company which is going out of the country, while “everyone else is coming in”, he said, warning that the decision of the company would hit it.
  • Harley-Davidson last week said that new retaliatory tariffs by the EU will cost $2,200 on an average motorcycle exported from the US to the EU, a key market for the company.