Trump denies he's to blame for Harley-Davidson decision

26 June, 2018, 17:47 | Author: Corey Lynch
  • President Donald Trump and Vice President Mike Pence walk together on their way to greet Harley Davidson executives on the South Lawn of the White House

Long term, Harley will attempt to offset the tariffs by moving production of motorcycles destined to European countries to its facilities outside the U.S., like Brazil, Thailand, Australia, and India.

President Donald Trump has threatened motorcycle maker Harley-Davidson with a big tax hit if it moves its manufacturing to Thailand, while also accusing them of using new trade tariffs as an excuse to leave the US. Harley-Davidson said Monday that the E.U.'s action increased the tariffs on its motorcycles "from 6 percent to 31 percent".

Trump also accused Harley-Davidson, without providing any evidence, of intentionally misleading Americans by saying the firm was moving some operations out of the U.S.in response to new tariffs imposed by the European Union. To avoid this cost, the company will shift to countries where there are lower or no tariffs.

On a full year basis, the company will face an extra $90-$100 million dollar in costs.

"Harley-Davidson's announcement today is the latest slap in the face to the loyal, highly-skilled workforce that made Harley an iconic American brand", Robert Martinez Jr., president of the International Association of Machinists and Aerospace Workers, said in a statement.

Some analysts expect to see more instances of company shifts when the second-quarter earnings season kicks off next month.

Minutes later, Trump tweeted that the US was "expanding" its "footprint" in the global trade market, warning countries to "play fair" or "pay tariffs".

"Harley-Davidson expects ramping-up production in global plants will require incremental investment and could take at least nine to 18 months to be fully complete". "Hence, they were just using Tariffs/Trade War as an excuse", Trump said on Twitter. A year after Trump pulled the US out of a 12-nation trade deal, the Trans-Pacific Partnership, in January 2017, Harley announced it would close its factory in Kansas City, Missouri, and consolidate production in York, Pennsylvania, eliminating about 260 jobs.




He alleged Harley-Davison's Monday announcement that it would move some more operations outside the US was long planned and that it was using Europe's new tariffs as an excuse. And it has announced tariffs on $50 billion in Chinese goods - a tariff list that could swell to $450 billion if Beijing refuses to back down and counterpunches with retaliatory moves.

Trump slammed the Milwaukee-based motorcycle company on Monday for waving a "white flag" with the EU.

The American motorcycle maker sells almost 40,000 new motorcycles a year in Europe, which accounts for 16 percent of the company's overall sales and is the biggest market for it outside of the US.

Trump said he's getting other countries to reduce and eliminate tariffs and trade barriers, and to open up markets.

The EU last week began slapping tariffs on American imports like bourbon, peanut butter and orange juice.

"A Harley-Davidson should never be built in another country-never!" "They must play fair or they will pay tariffs!" We are opening up closed markets and expanding our footprint. In the U.S., Harley-Davidson sold 147,972 motorcycles previous year, according to company data.

Trump, in March, instituted a tariff of 25 percent on steel and 10 percent on aluminum imports.

But last month, the Trump administration slapped the tariffs on allies Mexico, Canada and the European Union, prompting the retaliatory tariffs on US goods.

Recommended:



Popular

English bulldog wins title of World's Ugliest Dog
Here's what our winning pup's profile had to say about her life before World's Ugliest Dog stardom. A nine-year-old English bulldog called Zsa Zsa has won this year's world's ugliest dog contest.

Hamilton wins French GP to retake lead in F1 title race
Race stewards said his auto had been fitted with a fourth engine and turbo charger, exceeding the 21-race season's allocation of three.

Marin Cilic beats Novak Djokovic to claim Queen's Club title
The Croat fought back to win the Fever-Tree Championships 5-7 7-6 (7-4) 6-3 in the longest final in the tournament's history. But with a 0-10 deficit against Djokovic, including twice in straight sets at Wimbledon , the odds are not in his favour.

Trump addresses illegal immigration, crime
Despite Mr Trump's stance, House Majority Leader Kevin McCarthy said the chamber would press ahead on legislation next week. The bill - which failed on a 193-231 vote - would not have provided DACA recipients a path to citizenship.

Political milestones for women after New Zealand PM gives birth
In this May 22, 2018, file photo, New Zealand's Prime Minister Jacinda Ardern addresses Parliament in Wellington , New Zealand. Jacinda Ardern has cancelled a planned Friday media appearance with her newborn daughter after a rough first night as a mum.

Did you see Shaqiri and Xhaka's controversial celebrations against Serbia — Albanian Eagle
Xhaka curled the ball through traffic to tie the game at 1-1, and Ivanovic suddenly became a very unpopular man on social media. Switzerland midfielder Valon Behrami is receiving treatment for a muscle problem but is still likely to play.

Separating immigrant families is a cruel means to a cruel end
And daughter Ivanka Trump tweeted, "Thank you @POTUS for taking critical action ending family separation at our border". Neither, though, did it require parents to be kept in detention, apart from their children.

Brazil ace out of Costa Rica clash
Neymar was forced to leave Brazil's training session in Sochi early on Tuesday with a sore ankle, according to team officials. While Ureña acknowledged Brazil won't be easy, he was confident his team could reprise the magic from four years ago.

Paul McCartney Gives James Corden a Tour of Liverpool on 'Carpool Karaoke'
Then they pulled up at the home where he lived during his late teen years, and where he and John Lennon wrote their hit songs. Posing as a regular bartender, Corden served a drink or two before asking a patron to select a song on the jukebox.

European Union to begin counter trade tariffs against U.S. on Friday
Cohn said he understand Trump's rationale, but added that restricting vehicles to ones made in the U.S.is not realistic. Other countries hit by the U.S. tariffs have also retaliated , raising fears of a global trade war.