Harley Davidson Is Moving Some Of Its Production Out Of The US

Logo of U.S. motorcycle company Harley Davidson

There, it competes with European and Japanese-made motorcycles which are not subject to the new tariff.

White House trade and manufacturing adviser Peter Navarro said on Monday the administration wants Harley to make more motorcycles in the United States.

The company also warned of a potential "significant impact" from retaliatory tariffs after President Donald Trump announced the steel and aluminum tariffs.

The announcement also triggered a selloff on Wall Street, where Harley shares lost almost 6 percent and the Dow Jones Industrial Average fell almost 500 points before closing down more than 300 points or more than 1.3 percent.

In a filing to their investors, Harley-Davidson have announced that they plan to shift production of some of the models out of the U.S. to avoid the new European Union import tariffs. "There's a lot of irony here, to put it mildly".

Harley stock is down 19 per cent this year.

"The European Union is trying to punish US workers because they have engaged repeatedly in unfair trade practices and the president is saying enough is enough", she said.

The company chose to build the Thailand plant after Trump pulled out from the Trans-Pacific Partnership, which would have lowered import tariffs on its bikes in some of the fastest-growing motorcycle markets in Asia.

White House press secretary Sarah Sanders blames the European Union for those lost American jobs. Speaker Ryan, who is set to retire at the end of the year, is not a fan of Trump's tariffs and has spoken out against the trade war. The "Made in the U.S.A." crowd has merged with the "Make America Great Again" masses, and neither really seem to care that red baseball caps are sewn in China.

The company, which is to give more details on the move next month when it reports second-quarter earnings, has been moving some production overseas for years, somewhat eroding its image as an iconic American brand. But since then the company has been counting the costs of his trade policies.

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In the wake of the sluggish United States sales, Harley-Davidson announced in January it would close its Kansas City, Missouri assembly plant and consolidate jobs in York, Pennsylvania.

"I think this is only the beginning".

Meanwhile, the maker of Jack Daniel's, Brown-Forman Corp., said Monday it would have to raise the price of its product sold in the European Union because of the tariff hike, Bloomberg reported.

Correction: Harley-Davidson said it will be moving production to its worldwide factories, not necessarily to factories in Europe. Overseas sales also have been stalling.

The president is headed Thursday to the motorcycle manufacturer's home state of Wisconsin. He called the plan the "latest slap in the face to the loyal, highly skilled work force" that builds the company's bikes.

"We can not speculate about how this morning's announcement will impact employment in the U.S. Domestic sales are what drive production and employment at Harley's U.S. facilities". Other products targeted include peanut butter, orange juice, bourbon, blue jeans, and cigarettes. AshLee Strong says the best way to help American workers, consumers and manufacturers is to open new markets and not raise barriers.

Harley-Davidson now has overseas manufacturing plants in Brazil, India and Australia and is building a plant in Thailand. While Trump is now under significant pressure to relent on such imposed tariffs, it's likely the calls for a reversal will only raise in volume and in number, in the wake of quantifiable job losses linked directly to the president's trade strategies. Shifting production to its non-U.

It said the cost for the remainder of 2018 would amount to $30m to $45m. Analysts project the company will earn about US$587m this year on US$5b of revenue.

The company noted that ramping up production in global plants will require incremental investment and take nine to 18 months. The company sold nearly 40,000 bikes in Europe previous year, and the continent's share of total deliveries was the highest since 2011.

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