Trump surprised as Harley-Davidson decides to move 'some manufacturing' from US
Harley Davidson
As a result of the decision, Harley-Davidson shares sank more than 5 per cent in morning trading on Monday.
US president Trump expressed "surprise" as iconic motorcycle company Harley-Davidson decided to shift some manufacturing overseas to avoid European tariffs as the trade war between the US and Europe took another turn.
"Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag," Trump said on Twitter.
Outside the US, the company has a manufacting facility in Brazil, Thailand and India. It started its India operations in 2009 during the Obama administration from its plant in Gurgaon, a suburb of Delhi. The company offers a range of models in India to its eager 'fans'.
On June 22nd, the European Union had started charging 25 per cent import duties on a number of products including motorcycles as the Trump administration imposed tariffs on European steel and aluminium, ostensibly to protect US jobs.
"I fought hard for them and ultimately they will not pay tariffs selling into the EU, which has hurt us badly on trade, down $151 Billion. Taxes just a Harley excuse - be patient!" Trump said.
As a result of the decision, Harley-Davidson shares sank more than 5 per cent in morning trade on Monday.
"Harley-Davidson believes 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. In January, the company had decided to close its Kansas plant in the US as demand fell dramatically.
The Wisconsin-based company had 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.