Trump slams Harley for threat to leave US
washington — US President Donald Trump on Tuesday threatened motorcycle maker HarleyDavidson Inc with higher taxes and said their business would suffer in a public backlash over its decision to move production for European customers overseas.
“A Harley-Davidson should never be built in another country-never! 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!” Trump said.
“Harley must know that they won’t be able to sell back into U.S. without paying a big tax!”
It was unclear what taxes Trump was referring to, and why the company might have to pay them since it intends to maintain production in the US as well. Harley-Davidson said on Monday it will move production of motorcycles shipped to the EU from the United States to its international facilities and forecast that the trading bloc’s tariffs would cost the company $90 million to $100 million a year.
The president, in a series of Twitter posts that reflected his anger over the decision, also suggested the iconic American brand was using trade tensions over tariffs as an excuse to move production.
“Early this year Harley-Davidson BEIJING — China will remove import tariffs on animal feed ingredients including soybeans, soymeal and rapeseed from five Asian countries, the Ministry of Finance said on Tuesday, a sign Beijing is seeking alternative supplies of the commodities as a trade dispute escalates with the United States.
China will drop tariffs on soybeans,
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
Donald Trump @real DonaldTrump
said they would move much of their plant operations in Kansas City to Thailand. That was long before Tariffs were announced. Hence, they were just using Tariffs/ Trade War as an excuse,” Trump said on Twitter.
Harley shares fell nearly 1 per cent to $41.24 in early trading.
The company decided to build the Thailand plant last year after Trump pulled out from the TransPacific Partnership, which would have lowered import tariffs on its bikes in some of the fastest-growing soymeal, soybean cake, rapeseed and fishmeal originating from Bangladesh, India, Laos, South Korea and Sri Lanka from July 1, the ministry said.
Tariffs on soybeans are currently at three per cent, rapeseed at nine per cent, soybean meal and cake at five per cent and are two per cent on fishmeal.
motorcycle markets in Asia. In January, the company said it would close a plant in Kansas City, Missouri, due to a sharp drop in motorcycle shipments.
But, contrary to Trump’s tweet, it did not say at the time it was moving the operation to Thailand.
Harley said ramping up production overseas could take at least nine to 18 months. It has three assembly plants outside the US — one each in Brazil, India and Thailand.
Trump first responded angrily to the Harley announcement on Monday, saying he has fought hard for the 115-year-old company and was surprised by its plans, which he described as waving 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!” Trump said in a post on Twitter on Monday night. —