Harley Davidson to shift some production to avoid EU tariff burden

An American motorcycle manufacturer Harley-Davidson announced that its plans to shift its US manufacturing base to overseas in order to avoid burden of European Union tariffs. Last week, the European Union, in retaliation to U.S. tariffs on EU aluminium and steel exports, imposed tariffs on US products including bourbon, motorcycles and blue jeans.

Harley-Davidson exported about 19 per cent of its products to Europe in the first quarter of FY 2018, according to the company's earnings release.

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 EU destinations from the US to its international facilities to avoid the tariff burden."

President Donald Trump has expressed disappointment with Harley Davidson’s decision to shift production of motorcycle from the US. Donald Trump tweeted he was surprised that the company “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.”