Published: Tue, June 26, 2018
Money | By Michele Stevens

Harley-Davidson, Blaming Tariffs, Will Shift Some Manufacturing Overseas

Harley-Davidson, Blaming Tariffs, Will Shift Some Manufacturing Overseas

Harley-Davidson, the company synonymous with American motorcycles, announced that it would move production of vehicles bound for European markets out of the United States, to avoid the punitive tariffs the European Union had imposed on some companies importing products from America.

The company reports it sold about 40,000 motorcycles in the European Union market in 2017, and that "Europe is a critical market for Harley-Davidson".

The company said in a statement, "Harley-Davidson maintains a strong commitment to US-based manufacturing which is valued by riders globally".

"A company that is as connected to America, and Americana, as Harley is probably going to be laying off U.S. workers in favour of foreign workers and going to be losing money as a result of this", James Hardiman, an equity analyst with Wedbush Securities, said of the trade battle between the USA and the EU.

Now Harley joins iconic American companies including Levi Strauss & Co and even Germany's Daimler in getting caught in the middle of Trump's trade skirmishes with major trading partners.

Musa marks return with winning double as Nigeria beat Iceland
The more attacking outlook could see space open up for Everton playmaker Gylfi Sigurðsson . Watch the Live & Exclusive stream of the game on MAX HD3 & beIN SPORTS CONNECT .

Donovan, however, says that the move makes ideal sense in the context of the new tariffs. It anticipates the cost for the rest of the year to be approximately $30 million to $45 million.

"Unfortunately, this confirms my concerns and is a far too predictable outcome of policies that give companies like Harley-Davidson incentives to make their products elsewhere".

"Therefore, Harley-Davidson will not raise its manufacturer's suggested retail prices or wholesale prices to its dealers to cover the costs of the retaliatory tariffs". "Thank you, Harley-Davidson, for building things in America", the president said then. The company didn't note how USA workers would be affected but plans to detail financial implications as well as ways to mitigate the impact of retaliatory European Union tariffs during the company's second-quarter earnings conference call on July 24.

United Steelworkers, a labor union representing some of the motorcycle maker's USA employees, said Monday that Harley-Davidson had long since begun to shift its manufacturing operations overseas.

Trump has also ordered tariffs be imposed against Canada, Mexico and other USA allies, as well as China. However, on May 31 the White House announced that those exemptions would be ending at the end of the day.

Video of priest slapping crying child during baptism sparks outrage online
Another person said: "If that video would end with the father giving the priest a very strong bitch slap it would be ideal ". According to a Reddit user, the priest, speaking in French , can be heard saying, "Oh lala lala".

Harley Davidson said that the company's prices will not rise due to "an immediate and lasting detrimental impact to its business in the region". "But we expect the near-term impact to weigh on estimates and sentiment until a clearer path to mitigation is outlined".

The EU targeted the United States vehicles as part of its rebuttal to Trump's tariffs on imported aluminum and steel, one aspect of his multi-front trade war.

Rows of motorcycles are behind a bronze plate with corporate information on the showroom floor at a Harley-Davidson dealership in Glenshaw, Pennsylvania, April 26, 2017. It has factories in Brazil, India and Thailand.

Retaliation by Brussels targeted producers in Republican states where Trump draws much of his support - including bourbon whiskey, Levi's jeans - and is expected to raise the prices of USA goods worth up to €2.8bn (£2.5bn).

But the company said it expected increasing production in its global plants would require additional investment and could take as long as 18 months.

SCOTUS rules states can collect taxes from online shopping transactions
North Dakota, deciding that companies should charge sales tax even in states where they have no physical location. But the promise of additional revenue from online sales taxes may push more states to join.

Like this: