Trump: Harley will be ‘taxed like never before’
Manufacturer has no comment; state’s GOP leaders tread lightly
President Donald Trump escalated his scolding of Harley-Davidson Inc. on Tuesday for its plans to move some of its production overseas, threatening to increase taxes on an iconic Wisconsin brand that he said had lost its aura.
The president’s comments came two days before Trump was to visit the state for a groundbreaking ceremony for Foxconn Technology Group’s plant in
Mount Pleasant.
They put the state’s top Republicans in the uncomfortable position of having to choose between their president and a company that has helped define Wisconsin and its economy.
GOP Gov. Scott Walker avoided taking sides, saying he agreed with Trump’s long-term strategy on trade without weighing in on how it was affecting HarleyDavidson now.
“A Harley-Davidson should never be built in another country — never!” Trump tweeted Tuesday. “Their employees and customers are already very angry at them. If they move, watch, it will be the beginning of the end — they surrendered, they quit! The Aura will be gone and they will be taxed like never before!”
“When I had Harley-Davidson officials over to the White House, I chided them about tariffs in other countries, like India, being too high,” the president wrote in another tweet. “Companies are now coming back to America. Harley must know that they won’t be able to sell back into U.S. without paying a big tax!”
Harley-Davidson officials did not respond to Milwaukee Journal Sentinel questions about Trump’s tweets.
The company has said it’s moving the production of motorcycles destined for Europe to factories in Thailand, India and Brazil in response to the European Union’s steep tariffs on motorcycles made in the U.S.
Trump’s comments mean the focus during his visit to Wisconsin could be on Harley as much as Foxconn, the Taiwanese tech giant planning to invest up to $10 billion in its Mount Pleasant plant with as much as $4 billion in assistance from state and local taxpayers.
Walker plans to attend the event, as well as a political fundraiser Trump is hosting while he’s in Wisconsin.
At a stop in Appleton, Walker said he wanted to eliminate all tariffs, but he didn’t address whether he backed Trump or Harley in their dispute.
“The president himself said it at the G-7 summit a couple weekends ago, the best approach for us to get to is no tariffs,” Walker said.
Walker — who owns a Harley and for years has talked up the company — said he had discussed his views on trade with Trump at a White House visit last week and would do so again when Trump is in Wisconsin for the Foxconn ceremony.
Walker’s Democratic challengers pounced on Walker — saying he failed to stand up for Harley and criticizing him for refusing to comment on the morality of the policy Trump dropped last week of separating children from parents who are arrested for illegally crossing the U.S. border with Mexico.
“Wisconsin needs a governor who says Donald Trump is a dangerous idiot on every issue from immigration to trade policy. I am saying it,” Madison Mayor Paul Soglin said.
Soglin is one of the eight candidates running in the Aug. 14 Democratic primary to determine who will challenge Walker.
Milwaukee Mayor Tom Barrett said Trump is threatening Harley-Davidson and blamed the president for the loss of American jobs.
“The insanity in Washington, D.C., and the insanity in the White House continues,” Barrett told reporters. “Harley-Davidson is an iconic Milwaukee company that has created a lot of jobs in this community and in this nation. Unfortunately, now it is caught up in the madness that Donald Trump has created.”
U.S. House Speaker Paul Ryan of Janesville said he opposed trade barriers but did not say what he thought of Trump’s comments on Harley.
“I’ve said it before, I’ll say it again: I don’t think tariffs are the way to go,” Ryan told reporters.
GOP U.S. Rep. Jim Sensenbrenner said in a statement: “It’s unfortunate that such a strong Wisconsin company like Harley-Davidson has to bear the brunt of this trade dispute. 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.”
Harley-Davidson has said the impact of the 31 percent European tariffs, up from 6 percent, could be $100 million per year on the company, or roughly $2,200 per motorcycle.
About 16 percent of all new Harley-Davidson motorcycles are sold in Europe, a figure that’s been steady and is second in revenue only to the U.S. market. About 43 percent of the company’s bikes are sold outside the U.S., and Harley has set a goal of raising that to about 50 percent.
Harley plans to open a motorcycle assembly plant in Thailand this year, as the tariff on motorcycles assembled in the U.S. is about 60 percent in Thailand, according to the company.
Harley already has assembly plants in India and Brazil. The company’s Street-model motorcycles are made in India for Italy, Spain and Portugal.
Tuesday, a labor union that represents Harley workers in Kansas City, Missouri, stepped up its criticisms of the company for its plans to close that motorcycle assembly plant.
Harley has said it will close the Kansas City factory, despite pleas from some members of Congress to keep it open and retain about 800 jobs. The company has said it’s moving the work to the company’s plant in York, Pennsylvania, creating about 400 additional jobs in York.
Union officials contend that at least some of the Kansas City work is headed to Thailand.
“Harley workers are left wondering if Harley is still committed to manufacturing in America. Their announcement leaves us with more questions than answers,” Robert Martinez, president of the International Association of Machinists and Aerospace Workers, said in a tweet Tuesday.
“This is looking like just another excuse by Harley to justify moving more American jobs offshore,” Martinez tweeted.
Molly Beck, Bill Glabuer and Mary Spicuzza of the Journal Sentinel staff and Chris Mueller of the USA TODAY NETWORK-Wisconsin contributed to this report.