Trump Threatens Tax On Harley-Davidson Bikes Imported To The US

Harley-Davidson To Shift Production Overseas To Offset EU Tariffs

The tweet was Trump's latest in what has become a days-long effort to pressure Harley-Davidson to halt its plan to build some of its bikes overseas in response to new tariffs from Europe.

The company says it's doing so because of tariffs it's facing in a trade dispute between the USA and the European Union. S&P says the tariffs could lead to profit margin deterioration and increased risks when combined with falling retail sales and shipments. But Trump says that's an excuse and threatened the company with a "big tax" if they move their plant. Hence, they were just using Tariffs/Trade War as an excuse.

But Harley-Davidson's plight in Europe drew fresh interest from French Parliament member Eric Straumann, who contacted Levatich to propose a new factory on the French-German border in Alsace.

This week Harley said it would move production of motorcycles bound for Europe overseas, blaming European Union tariffs that it said would add $2,200 to the cost of an average bike. He argued this was done in retaliation to the imbalance of trade that the United States has with major trading partners including China, the European Union and India, Press Trust of India reports. "Harley must know that they won't be able to sell back into US without paying a big tax!"

The Wisconsin-based manufacturer of iconic motorcycles has said it planned to move some manufacturing overseas in response to European Union tariffs retaliating for USA duties.

"When I had Harley-Davidson officials over to the White House, I chided them about tariffs in other countries, like India, being too high", Trump tweeted. Outside the US, Harley-Davidson has manufacturing facilities in India, Brazil and Australia.

More news: Trump Threatens Harley-Davidson 'Will Be Taxed Like Never Before!'

Harley-Davidson executives met with Trump at the White House previous year after Trump canceled a visit to the company's headquarters in Milwaukee because protests had been planned.

Trump added that the administration is finishing a study on imposing tariffs on cars from the EU.

The rift is particularly notable because Harley-Davidson has traditionally, had strong support within the GOP.

"A Harley-Davidson should never be built in another country-never!"

The tweetstorm comes one day after the president said he was "Surprised that Harley-Davidson, of all companies, would be the first to wave the white flag". Trump tweeted. "Their employees and customers are already very angry at them". "I understand that the President is a tough negotiator, but I urge him to consider a more targeted approach that protects American workers and businesses".

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