Trump Threatens Tax On Harley-Davidson Bikes Imported To The US
28 June, 2018, 11:25 | Author: Shawna Walton
President Donald Trump is warning Harley-Davidson that "We won't forget" about its decision to shift some motorcycle production overseas.
"Harley-Davidson is using that as an excuse, and I don't like that because I've been very good to Harley-Davidson and they used it as an excuse", he said in response. Among the items subject to a new 25 percent tariff are orange juice, whisky and motorcycles.
To avoid paying a 31% tariff to ship motorcycles from the U.S. to the EU, Harley made a decision to movemore production to its plants in places like Thailand and Brazil. "Increasing global production to alleviate the European Union tariff burden is not the company's preference, but represents the only sustainable option to make its motorcycles accessible to customers in the European Union and maintain a viable business in Europe".
We're not sure how patient Harley-Davidson can be, honestly.
The company reiterated Tuesday that it was moving some production of motorcycles destined for sale in the European Union to its existing worldwide facilities to "address the additional tariffs imposed by the European Union".
Trump recently imposed steep tariffs on aluminum and steel imported from Canada, Mexico and Europe in his bid to level the trade playing field and reduce trade deficits between the USA and its trade partners.
"The president is saying enough is enough", she said. "It is a direct example of how trade policies could help this company, but we have to get on with our work to grow the business by any means possible, and that's what we're doing".
Harley-Davidson has denied that.
Michael Pflughoeft, a spokesman for Harley-Davidson, said that the anti-Trump quote linked to the company's chief executive that was circulating on Twitter in various forms was "absolutely, unequivocally fake and false".
"That was long before Tariffs were announced", Trump said on Twitter. "Shows how unbalanced & unfair trade is, but we will fix it", he tweeted. We are opening up closed markets and expanding our footprint.
"Harley-Davidson is a true American icon, one of the greats". That was an empty threat - all motorcycles Harley sells in the USA come from American factories, and the company won't import into the market. "Harley must know that they won't be able to sell back into USA without paying a big tax!"
Harley-Davidson said it had no comment on the president's tweets.
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In 2017, Harley sold almost 40,000 new motorcycles in Europe which accounted for more than 16% of the company's sales past year . Harley-Davidson said it will not raise its prices to avert " an immediate and lasting detrimental impact " on sales in Europe.
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