Tariffs to force Harleys offshore

PRODUCTION of Harley-Davidson motorcycles sold in Europe will move from US factories to facilities overseas, the Milwaukee-based company announced on 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 US business harmed by trade barriers in other countries, but Harley had warned that tariffs could negatively impact its sales.

Mr Trump tweeted on Monday that he’s surprised Harley-Davidson was first “to wave the White Flag” in the tariff dispute between the US and the European Union.

“Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag. I fought hard for them and ultimately they will not pay tariffs selling into the E.U., which has hurt us badly on trade, down $151 Billion. Taxes just a Harley excuse – be patient! #MAGA,” Mr Trump tweeted.

A Harley-Davidson spokesman said the company had nothing to say in response to Mr Trump’s tweet beyond its filing with the US Securities and Exchange Commission.

The European Union on Friday began rolling out tariffs on American imports including bourbon, peanut butter and orange juice. The EU tariffs on $US3.4 billion worth of US products are retaliation for duties the Trump administration is imposing on European steel and aluminium.

The company said in a regulatory filing on Monday that EU tariffs on its motorcycles exported from the US jumped between 6 per cent and 31 per cent, adding about $US2200 ($A2970) per motorcycle exported from the US to the EU.

The impact on US workers

SURPRISED THAT HARLEY-DAVIDSON, OF ALL COMPANIES, WOULD BE THE FIRST TO WAVE THE WHITE FLAG PRESIDENT DONALD TRUMP

of Harley-Davidson’s decision was not immediately clear. Harley-Davidson declined interview requests but said in prepared remarks the company “maintains a strong commitment to US-based manufacturing which is valued by riders globally”.

White House press secretary Sarah Huckabee Sanders defended Mr Trump’s trade policies on Monday.

“The EU is attempting to punish US 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,” Ms Sanders said.