Trade conflict forces Harley-davidson’s hand

Tariffs lead to production shift for bike maker

MILWAUKEE — Production of Harley-davidson motorcycles sold in Europe will move from U.S. factories to facilities overseas, the Milwaukee-based company announced Monday, a consequence of the retaliatory tariffs the EU is imposing on American exports in an escalating trade war with the Trump administration.

President Donald Trump has used the iconic American motorcycle-maker as an example of a U.S. business harmed by trade barriers in other countries, but Harley had warnedthattariffscouldhaveanegative impact on its sales.

Trump tweeted Monday that he’s surprised that Harley-davidson was first “to wave the White Flag” in the tariff dispute between the U.S. and the European Union.

The European Union on Friday began rolling out tariffs on American imports including bourbon, peanut butter and orange juice . The EU tariffs on $3.4 billion worth of U.S. products are retaliation for duties the Trump administration is imposing on European steel and aluminum.

The company said in a regulatory filing Monday that EU tariffs on its motorcycles exported from the U.S. jumped between 6 and 31 percent, adding about $2,200 to the average motorcycle exported to the EU.

The impact on U.S. workers because of Harley-davidson’s decision was not immediately clear. Harley-davidson declined interview requests Monday but said in prepared remarks that the company “maintains a strong commitment to U.s.-based manufacturing which is valued by riders globally.”

White House press secretary

Sarah Huckabee Sanders defended Trump’s trade policies Monday during a press briefing.

“The EU is attempting to punish U.S. workers with unfair and discriminatory trade policies, and President Trump will continue to push for free, fair and reciprocal trade and hopes that the EU will join us in that,” Sanders said.

Harley-davidson Inc. sold almost 40,000 motorcycles in the EU last year, its second-largest market after the United States, according to the company. The EU sales make up almost 16.4 percent of Harley-davidson’s worldwide sales. In the

U.S., Harley-davidson sold 147,972 motorcycles last year.