Alwaght- Donald Trump slammed American motorcycle maker for waving "white flag" in US-Europe trade war. Harley-Davidson Inc said it would move production for European customers overseas to avoid retaliatory tariffs that could cost it up to $100 million per year.
Trump said he has fought hard for Harley-Davidson company and was surprised by its plans, which he described as waving the “White Flag.”
"Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag. I fought hard for them and ultimately they will not pay tariffs selling into the E.U., which has hurt us badly on trade, down $151 Billion. Taxes just a Harley excuse - be patient!" Trump said in a post on Twitter.
The Milwaukee-based company said it would shift some production of bikes heading for customers in the European Union to its international production plants. It has factories in Brazil, India and Thailand.
The EU imposed tariffs on a range of US-made products after Mr Trump imposed extra taxes on EU steel and aluminum. The levy on Harley-Davidson bikes has increased to 31% from 6%, the company said. Analysts cut their profit forecasts on concerns about how quickly the company would be able to adapt to the 25 percent import duties the European Union began charging on June 22.
In a regulatory filing the company said the retaliatory duties would result in an incremental cost of about $2,200 per average motorcycle exported from the United States to the European Union, but did not provide more details on current motorcycle costs.
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.
Trump vowed to make the iconic motorcycle maker great again when he took office last year. But since then the company has been counting the costs of his trade policies.
In late April, Harley said Trump’s metal tariffs would inflate its costs by $15 million to $20 million this year on top of already rising raw material prices that it expected at the start of the year.
White House trade and manufacturing adviser Peter Navarro said on Monday the administration wants Harley to make more motorcycles in the United States.
“Remember, they came to us, for example, pointing out that India had a 100 percent tariff on Harley Davidsons. That’s certainly not fair,” Navarro told CNBC.
“We want Harleys made here, more made here, and that’s going to happen under the president’s trade policies.”
In response to Navarro’s comments, a Harley spokesman said the company has made its position clear in Monday’s filing.
