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Harley-Davidson to Move Some Production Out of U.S. to Avoid Tariffs

“The tremendous cost increase, if passed onto its dealers and retail customers, would have an immediate and lasting detrimental impact to its business in the region,” the company said.

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It was announced on June 25, that Harley-Davidson would move some production of motorcycles for European customers out of the United States to avoid European Union retaliatory tariffs in response to President Trump’s trade measures.

The company said on Monday, “it is not the company’s preference, but represents the only sustainable option to make its motorcycles accessible to customers in the E.U. and maintain a viable business in Europe.”

According to CNN, “The European Commission announced on Wednesday, June 18, that it had approved initial retaliatory tariffs on U.S. exports worth €2.8 billion ($3.2 billion). The tariffs will hit American products including motorcycles, orange juice, bourbon, peanut butter, boats, cigarettes and denim. They are a response to the Trump administration’s tariffs on steel and aluminum exports from Europe.”

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Harley-Davidson said that the tariff increase from 6 percent to 31 percent will make each motorcycle about $2,200 more expensive to export.

“The tremendous cost increase, if passed onto its dealers and retail customers, would have an immediate and lasting detrimental impact to its business in the region,” the company said.

Link: Harley-Davidson

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