Donald Trump criticises Harley-Davidson for decision over tariffs

Donald Trump criticises Harley-Davidson for decision over tariffs

USA companies that range from boat-builders to nail manufacturers have warned about the consequences of escalating trade tensions.

Mr Trump had made raising manufacturing employment a goal, but economists warn that the escalating trade tensions are likely to be counter-productive.

Trump took to twitter to express his criticism and stated "Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag".

Harley-Davidson said that shifting targeted production from the global facilities could take at least nine to 18 months to be completed. "There's a lot of irony here, to put it mildly". The Associated Press reports that the new tariff on imported American motorcycles jumped from 6 percent to 31 percent, which translates to an added cost of about $2,200 per bike, according to a regulatory filing from Harley.

Harley didn't specify which worldwide plants will boost output for European Union markets.

Harley-Davidson's move is some of the most direct evidence yet that tit-for-tat trade fights between the United States and other countries have consequences for American companies.

The company does not have any manufacturing facility in Europe. In the near-term, the company will bear the significant impact resulting from these tariffs, and the company estimates the incremental cost for the remainder of 2018 to be approximately $30 to $45 million. Such risks and uncertainties include the following, among other factors: (i) uncertainties regarding the quantity and mix of motorcycles that the company exports from the US during the periods in question; (ii) uncertainties regarding the import prices of motorcycles; (iii) whether the European Union tariffs apply to shipments that had already commenced at the effective time of the tariffs; (iv) uncertain timing associated with shifting production from the global facilities; and (v) uncertainties regarding the size and duration of European Union tariffs. Harley-Davidson's U.S. bike revenue dropped 8.5% a year ago from 2016, but only 0.4% in Europe.

In a regulatory filing, Harley-Davidson said: "To address the substantial cost of this tariff burden long-term, Harley-Davidson will be implementing a plan to shift production of motorcycles for European Union destinations from the United States to its global facilities to avoid the tariff burden".

Harley-Davidson's stock fell 5% on Monday.

"The European Union is attempting to punish United States workers with unfair and discriminatory trade policies, and President Trump will continue to push for free, fair and reciprocal trade in hopes that the EU will join us in that", Sanders told reporters at the White House. Trump withdrew from the long-planned trade pact in January 2017.

Mr Trump vowed to make the iconic motorcycle maker great again when he took office a year ago.

More potential pitfalls for Harley-Davidson and other US manufacturers could be on the way.

A US motorcycle sales slump has deepened since then, spurring Harley's decision in January to close a plant in Kansas City, Missouri, eliminating about 260 jobs.

In response to the USA tariffs, the European Union began charging import duties of 25% on a range of United States products, including big motorcycles like Harley's.

"Harley-Davidson's announcement today is the latest slap in the face to the loyal, highly-skilled workforce that made Harley an iconic American brand", Robert Martinez Jr., president of the International Association of Machinists and Aerospace Workers, said in a statement.



Related Posts

Ronnie Ortiz-Magro's Ex Jen Harley Arrested for Domestic Battery
According to TMZ , Ortiz-Magro and Harley fought in a auto she was driving as they headed home from a barbecue. As Harley was the one driving at the time it is reported that the Jersey Shore star asked her to pull over.

Grand Theft Auto Online’s Nightclub Update Announced, Launches in July
Now, the developer has made a decision to boost the nightlife scene for the streets of Los Santos with fresh content. Tale Of Us have uploaded the trailer to their Instagram page.

Spain, Portugal qualify after dramatic games as Ronaldo misses penalty
Ansarifard converted the penalty to make it 1-1, pushing Portugal to second spot in the group behind Spain . Spain, which was minutes away from elimination, ended up topping the group with that last-minute goal.

First satellite to collect space junk set deployed from ISS
Once the mission is accomplished, the spacecraft will burn up along with the debris as soon as it enters the Earth's atmosphere. The UK Space Agency's RemoveDEBRIS mission is one of the world's first attempts to address the build-up of unsafe space debris.

Alpha Centauri Dominates Coronation Stakes In Course-Record Time
Now 3-for-3 for trainer Mark Johnston, the filly sired by Main Lobster finished a neck better than La Pelosa (12-1, 13-1). The giant Pallasator claimed the Queen Alexandra Stakes, the final race of Royal Ascot 2018.

LeBron James reportedly not interested in elaborate free agency pitches
Will LeBron James succeed to form another "Super Team" this offseason? James has played in the NBA Finals eight consecutive years. James could re-sign with the Cavaliers on a short-term deal that allows him to weigh his future again in a year or two.

Inside Priyanka Chopra, Nick Jonas And Parineeti's Goa Vacation
Priyanka and her friends and family hosted him for a dinner at her new apartment in Mumbai. Priyanka was also spotted clicking pictures with a few fans she met during her vacation.

Amelie Mauresmo next Davis Cup captain in France, 1st woman
Julien Benneteau, now ranked 66th in the ATP singles rankings, will take on the Fed Cup role, held in the past by Mauresmo. During her playing career, she won two Grand Slam titles - the Australian Open and Wimbledon, both in 2006.

Did that just happen? Astros' Alex Bregman shaves mustache mid-game
Unfortunately, the new look didn't help him as he failed to record a hit - finishing 0-for-4 - in the Astros' 11-3 win. In the second, he walked and eventually scored on a Yuli Gurriel grand slam that capped off an eight-run inning.

Microsoft upgrades ad-blocker for Edge on mobile
Microsoft is apparently serious about creating a great experience for users of its Edge browser on Android and iOS. Microsoft also confirmed the feature's rollout to the stable versions of iOS and Android would happen very soon.

© 2015 ExpressNewsline. All Rights reserved.