Trade war causes Harley-Davidson to move manufacturing out of US

Trade war causes Harley-Davidson to move manufacturing out of US

Trade war causes Harley-Davidson to move manufacturing out of US

A business like Harley-Davidson gets hit at both ends, as American tariffs on steel and aluminum imports drive up the cost of raw materials used to build motorcycles and retaliatory European Union tariffs make it more hard to sell their products.

On Friday, the European Union began rolling out tariffs worth $3.4 billion on American imports like bourbon, peanut butter, orange juice and Harley-Davidson motorbikes.

Harley-Davidson now has overseas manufacturing plants in Brazil, India and Australia and is building a plant in Thailand. The company did not comment on how many jobs would be shifted away from the US, but said that it would take between nine and 18 months to move production away from Wisconsin.

Milwaukee-based Harley-Davidson Inc. will shift production of motorcycles for Europe to its worldwide facilities to avoid up to $100 million annually in costs from tariffs applied by the European Union.

It also did not say which USA factories would be affected.

Harley-Davidson Inc said on Monday it would not raise retail or wholesale prices for its dealers to cover the costs of the retaliatory tariffs by the European Union on USA products.

Harley stock is down 13 percent this year. Harley's decline came amid broader market weakness that saw the Dow Jones Industrial Average fall almost 400 points or more than 1.5 percent.

Spain, Portugal qualify after dramatic games as Ronaldo misses penalty
Today, have a go at selecting your World Cup Team of the Week and see how close you get to the official Soccer Laduma selection . If it's a draw then it will be decided by fair play as the teams are now level on goal difference and goals scored.

Priyanka Chopra and Nick Jonas Just Hit This Major Relationship Milestone
After months of speculation, it seems Priyanka Chopra and Nick Jonas have finally decided to make their relationship official. Worldwide star Priyanka Chopra and American singer-songwriter Nick Jonas have been under the scanner in the past few days.

Australia, Denmark draw 1-1
Mile Jedinak scored from a penalty given after a VAR review as Australia came from a goal down to draw 1-1 with Denmark . Denmark will be looking to book their place in the knockout stages of the competition with a victory over Australia .

In January, the company announced the closure of a plant in Kansas City, Missouri as part of a consolidation plan after its motorcycle shipments fell to their lowest level in six years.

Last week German automaker Daimler AG cut its 2018 earnings outlook, a change that it says is partly due to increased import tariffs for USA vehicles in China. In the U.S., Harley-Davidson sold 147,972 motorcycles past year, according to company data. Bikes built at these facilities for European customers won't be subject to the new EU tariffs, which came after President Donald Trump instituted steep tariffs on European steel and aluminum coming into the United States.

In February 2017, Trump welcomed Harley-Davidson executives to Washington and viewed a number of the company's motorcycles on the White House South Lawn. The company has warned the president's tariffs on steel and aluminum will drive up raw materials costs.

Harley - once praised by Trump at a February 2017 White House meeting as a model American manufacturer - didn't specify which global plants will boost output for European Union markets. While Harley said it's committed to making motorcycles in the U.S., it suggested it had no other choice but to move production from its home market. Harley-Davidson, based in Milwaukee, employed 5,800 workers at the end of 2017.

Daimler, which also produces its premium Mercedes cars in the United States, said its 2018 profits were expected to be hit by higher Chinese tariffs on imports of American-made cars. Daimler produces vehicles in the U.S.

Republicans also used the Harley announcement to take a shot at Trump's recent trade attacks on the EU, Canada, and Mexico.

Related news