Trump Threatens To Hit Harley-Davidson With Taxes If It Moves Overseas

Trump Supporters Soon Will Learn That No One Wins A Trade War

US President Donald Trump continued his attacks on the legendary Harley-Davidson motorcycle company Wednesday, warning "we won't forget" after the firm said it planned to shift some manufacturing offshore.

"When I had Harley-Davidson officials over to the White House, I chided them about tariffs in other countries, like India, being too high".

On Monday, Harley-Davidson in its US Securities and Exchange Commission (SEC) filing had said that the new retaliatory tariffs by the European Union (an increase from six per cent to 31 per cent) will result in an incremental cost of approximately $2,200 on an average motorcycle exported from the US to the 28-member trading bloc.

Trump said this while defending his recent decision to impose tariffs on the import of foreign products.

Soon after the company's announcement, Trump weighed in with typical bombast. Harley-Davidson spokesman Michael Pflughoeft declined to comment on the president's tweet. Trump said in a post on Twitter on Monday night. Their employees and customers are already very angry with them. If they move, watch, it will be the beginning of the end - they surrendered, they quit! Harley-Davidson has denied a link between Kansas City and Thailand.

The company also said it would move some motorcycle production overseas. "Europe is a critical market for Harley-Davidson".

Trump yesterday said he was surprised by such a decision by the motorcycle manufacturer. "They take care of our police officers".




Moving the production worldwide will allow Harley-Davidson to avoid tariffs the European Union imposed in retaliation for Trump's steel and aluminum tariffs.

"And Ronald Reagan stepped in and he put on large tariffs and you wouldn't be talking about Harley-Davidson probably right now if he didn't do that".

Harley-Davidson announced in January it would close its Kansas City, Missouri assembly plant and consolidate jobs in York, Pennsylvania.

Earlier in the trade battle, Trump cited India's high tariffs on imported motorcycles as an example of why tougher trade policy was necessary.

"We see tremendous opportunity, particularly in Southeast Asia and the investment in the plant in Thailand to get around the egregious tariffs and duties, is a part of accessing a very important market", Harley-Davidson chief executive Matthew Levatich said in late April 24.

House Speaker Paul Ryan, whose district is home to some of Harley-Davidson's facilities, also pointed to the company as an American firm that would be a victor from tax reform.

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