Harley-Davidson Plan to Move Production Abroad Draws Tax Threat from Trump

Labor News

Europe is second to only the United States among Harley-Davidson’s most important markets. President Trump has often lauded the company as an American icon and job creator. Credit Carlos Barria/Reuters

Reprinted from The New York Times by Alan Rappeport on June 26, 2018.

President Trump lashed out at one of his favorite American manufacturers on Tuesday, criticizing Harley-Davidson over its plans to move some of its motorcycle production abroad and threatening it with steep punitive taxes.

In a series of tweets on Tuesday, the president accused the Wisconsin-based company of surrendering in Trump’s trade war with Europe and said the firm would lose its “aura” if it produced bikes overseas.

“If they move, watch, it will be the beginning of the end — they surrendered, they quit!” he wrote. “The Aura will be gone and they will be taxed like never before!”

The attack came a day after Harley-Davidson announced that it would move some of its production abroad in response to stiff retaliatory tariffs that the European Union imposed in response to Trump’s trade measures. Rather than raise prices to cover the new 31 percent tariff on bikes it exports to the European Union, Harley said it would shift some of its production to overseas facilities to avoid the tariffs. …

NY Times 6/26

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About Jeffrey Burman 5303 Articles
Jeff Burman served on the Guild’s Board of Directors from 1992 to 2019. He is now retired. He can be reached at jeffrey.s.burman.57@gmail.com.

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