Harley’s business will be hit if they move production

Harley-Davidson To Move More Production Oversees Amid US-EU Trade Tensions

When the President of the United States Donald Trump threatened to escalate a trade war with Europe by imposing a 20 percent tariff on all us imports of European Union-assembled vehicles via Twitter, European Auto Stocks Index immediately reacted, cratering.

Harley, which sold almost 40,000 motorcycles in Europe a year ago, said it planned to absorb those costs rather than pass them onto customers and risk hurting sales. At the very end, using written shouting, he warns Harley-Davidson they will be taxed like never before. Mr. Trump said. "Harley must know that they won't be able to sell back into USA without paying a big tax!"

If it continues, Harley estimate the tariffs will cost them $90 - 100 million (£67 - 75 million) a year, which is approximately one third of their entire operating profit.

Trump said he spoke with Harley-Davidson officials about the tariffs in other countries for being too high, when they visited him at the White House.

On Monday, Harley-Davidson announced it is moving some production overseas because of retaliatory measures from the European Union against Trump's duties on steel and aluminum from the bloc.

But the president's claim that the Kansas City plant's operations are moving to Thailand are disputed by both Harley-Davidson and leaders of the union representing workers at the plant.

More news: What must happen for Argentina to avoid World Cup elimination?

The new measures raise tariffs on U.S. motorcycles sold in the European Union from 6% to 31%, which for Harley-Davidson adds approximately $2200 to the final cost.

Harley-Davidson says it will not raise its prices to avert "an immediate and lasting detrimental impact" on sales in Europe.

"Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag", he wrote.

The company has repeatedly described the Thailand factory, along with other overseas production, as vital to its long-term need to boost foreign markets to make up for sluggish sales in the US. In January, it said it would consolidate its Kansas City, Mo., plant into its York, Pennsylvania, facility.

The Thailand plant had no connection with the closure of the Kansas City facility, Harley-Davidson Chief Executive Matt Levatich told Reuters in an interview in February. Harley-Davidson employs more than 6,000 people globally.

Despite that denial, the question that President Trump raised in his first tweet is still unanswered. The company has said ramping up production overseas could take at least nine to 18 months.

More news: Was Ronaldo fortunate to avoid red card against Iran?

Harley-Davidson was already struggling to combat a dip in USA demand by boosting sales overseas to 50% of total annual volume from about 43% now. "Europe is a critical market for Harley-Davidson", said the company in a prepared statement.

Johnson is also a former employee of Harley Davidson in West Fargo, where he was a parts manager for 14 years.

It's unclear how Harley-Davidson's plans will be received by motorcycle owners. Trump tweeted early Tuesday. This is clearly targeted at Milwaukee-based Harley-Davidson, though Indian Motorcycles (and parent company Polaris) will also be impacted.

The same day, Trump reiterated his intention to slap new tariffs on European cars and announced a specific number: 20 percent.

Trump has used Harley-Davidson as an example of a United States business harmed by trade barriers in other countries, but Harley had warned that tariffs could negatively impact its sales.

John Lowery, a sales manager with Battlefield Harley-Davidson in Straban Township, Adams County, said he isn't that concerned, since the move involves only production of Harley's sold overseas.

More news: Cavs want to keep Kevin Love even if LeBron James leaves

Related:

  • Harley Davidson to begin moving some production overseas

    Harley Davidson to begin moving some production overseas

    Ryan says the US should counter unfair trading practices, but says, "There are better tools than tariff increases". For the US, Harley-Davidson production isn't changing: the motorcycles sold in the country will still be made here.
    Oil falls as OPEC nears deal to raise production

    Oil falls as OPEC nears deal to raise production

    Iran is usually not part of the committee, which includes Russia, Saudi Arabia, the UAE, Oman, Kuwait, Algeria and Venezuela. That means the country has little to gain from a deal to raise OPEC output, unlike top oil exporter Saudi Arabia.

    Kirstjen Nielsen, DHS secretary

    John Moore/Getty ImagesA Honduran mother with her daughter shortly before they are separated at the US-Mexico border. CNN is looking into reports that these individuals are being turned away there, as well.
  • Germany and France agreed on the establishment of a Eurozone budget

    Germany and France agreed on the establishment of a Eurozone budget

    Italy's new government has banned on NGO migrant rescue ships from docking at its ports and urged Malta to take in the Lifeline. Last week, he refused to allow the Aquarius, a ship that picked up hundreds of people, to dock.
    First Lady Melania Trump Makes Trip To Visit Border Detention Facilities

    First Lady Melania Trump Makes Trip To Visit Border Detention Facilities

    Even though Trump has acted unilaterally to stem the family separations, lawmakers still prefer a legislative fix. Speaking during a press conference, Trump said she was eager to see the children and learn more about the process.
    Google Think Salman is the 'Worst Bollywood Actor'?

    Google Think Salman is the 'Worst Bollywood Actor'?

    Till now, Race 3 has grossed Rs 138.41 crore (nett Rs 106.47 crore) and Rs 55 crore in the worldwide markets. Deepika Padukone , Ranveer Singh, and Shahid Kapoor's Padmaavat maintains the top spot with Rs 114 crore.
  • Turkey's victorious Erdogan set to assume sweeping powers

    Turkey's victorious Erdogan set to assume sweeping powers

    There are ongoing debates about whether the election was "free", amid reports of ballot stuffing and vote rigging. Sadi Guven said the president "received the absolute majority of all valid votes", BBC reported.
    'Relaxed' Southgate plays down row over leaked England photo

    'Relaxed' Southgate plays down row over leaked England photo

    We just want to win as many games as possible and he just popped up with two goals that got us all three points. In contrast, England's Premier League is viewed as one of the world's most premier divisions.
    England produced a batting masterclass in third ODI, says Ricky Ponting

    England produced a batting masterclass in third ODI, says Ricky Ponting

    Bairstow , on 30, skyed a drive off Tye but Marcus Stoinis failed to hold an extremely tough chance as he ran back from mid-on. In the intervening years, they have developed into the most exciting, destructive and successful one-day team in the world.
  • For first time ever, FDA approves marijuana-derived medicine

    For first time ever, FDA approves marijuana-derived medicine

    Epidiolex is also the first prescription created to treat children with Dravet syndrome , according to the FDA's announcement. The FDA has previously sent warning letters to companies that hyped their products as cancer or Alzheimer's fighters.
    Costa lifts Spain to 1-0 win over Iran

    Costa lifts Spain to 1-0 win over Iran

    Iran , meanwhile, face Portugal on the same day needing a win to progress at the expense of Cristiano Ronaldo and Co. But Hierro, like Iniesta , has no intention of being the man who steered Spain to an unthinkable World Cup disaster.
    FOX Accepts Higher Cash Bid From Disney - Dealing A Blow To Comcast

    FOX Accepts Higher Cash Bid From Disney - Dealing A Blow To Comcast

    Fox's share price was trading at $44 early on Wednesday morning, indicating investors believe a bigger bid is likely. Disney said it's raising its offer because Fox's value increased due to "tax reform and operating improvements".

Comments

Latest news

Apple Working on High-End AirPods and Over-Ear Headphones for 2019
Apple is also looking to increase the distance that AirPods can function away from an iPhone or iPad, the news service reported. Talking about the AirPods first, these wireless earphones will be able to feature noise-cancellation and water-resistance.

Messi is frustrated and hungry - Mascherano
Fabregas wanted to let people know that Ronaldo's goals have come via situations that are easier to score from. Argentina's Lionel Messi looks dejected after the match.

Lewis Hamilton faces engine wait ahead of French Grand Prix
His final sector time eclipsed that of his team-mate to snatch a 75th career pole by 0.118 seconds. You have seen that on Friday and we have been able to maintain the gaps to Saturday.

Hazard, Lukaku Goals Put Belgium in Control Against Tunisia
It was the second-earliest goal scored by a Belgium player at a World Cup after Leopold Anoul scored in the fifth minute in 1954. Belgium go into the second half with a narrow 2-1 lead, despite dominating for large spells of the first 45 minutes.

Messi can not be compared to Maradona, claims Argentina World Cup victor Kempes
Who is Lionel Messi's wife Antonella Roccuzzo? "The defeat is my responsibility because I am the coach ", he said. And if such opportunities should arise, Sampaoli said it's imperative for Argentina to find the back of the net.

Migrant feud casts shadow as Macron and Merkel seek EU roadmap
A European solution "doesn't convince me", said Bavaria's Prime Minister Markus Soeder in a June 14 Bild Zeitung interview . Seehofer's "masterplan" on immigration was meant to be the showpiece of the CSU's tough stance against new arrivals.

Captain Kolarov fires Serbia to victory over Costa Rica
Southampton's midfielder Tusan Tadic , has 51 caps and 13 goals for Serbia , and contributes a lot at the offensive end. Serbia secured victory despite striker Aleksandar Mitrovic missing a big chance in the second half.

Another record! Second World Cup's quickest red card
Footage of a wonderfully selfless act from Japanese fans has gone viral, in a touching end to a big World Cup upset . Coach Akira Nishino's plans worked to perfection as Samurai Blue got just the result they were hoping for.

LeBron James: where will the Cleveland star play next season?
But Lillard is too expensive on his current contract for the Lakersto afford him, George, and James in a practical way. Free agency is set to open on July 1 and both players are likely to take multiple meetings throughout the process.

Britain to increase health care spending
She said technology was "transforming how we engage with the NHS" and it can "improve the way care is delivered". It's right that we use that money to spend on our priorities, and the NHS is our number-one priority".

Ashleigh Barty beats Johanna Konta to win fiery Nottingham Open final
Konta didn't let the improvement of her opponent phase her answering with a shutout in the second game. Jakupovic had an early break in the second as well but Konta soon levelled before surging to victory.

President Trump Orders Creation of 'Space Force'
The policy sets up new guidelines for satellite design and operation, as well as tracking the growing amount of clutter in space. Air Force was created through the 1947 National Security Act, passed by Congress and signed into law by President Harry Truman.

'Acrobat' Schmeichel earns praise after denying Peru
Hareide's side kick-off their campaign in Saransk on Saturday, with Australia and tournament favourites France also in the pool. Hareide said in his post-match press conference of Leicester's Schmeichel: "He is acrobatic, he is a very quick goalkeeper".

Cleveland Cavs Made Calls To Spurs About Kawhi Leonard
Freeing themselves of the Deng contract and renouncing rights. will give them enough space to do whatever they please. The Oklahoma City media reports that Thunder management is optimistic he will re-sign there.

DOJ: Comey's handling of Clinton email investigation unconventional but not biased
When Manafort was first indicted, the White House said the charges had nothing to do with the president and the 2016 campaign. Trump wielded it as a blunt instrument Friday, bludgeoning the integrity of the Justice Department.

Other news