Harley-Davidson is planning to shift its work from the USA to overseas. To avoid paying European tariffs imposed last week Harley-Davidson has decided to move the manufacturing of its bike overseas.
The announcement has been made after the US President Donald Trump passed huge tariffs & increased steel cost which has negatively affect the auto market.
In early trading, the shares of Harley-Davidson went down by 6.4% to $41.37. Duties of 31% were added by the European Union to American motorcycles. This added the cost to EU consumers by almost $2,200.
US vehicles were targeted by European Union as a reaction to Trump’s decision of placing tariffs on imported aluminum and steel.
It will take 9 to 18 months for Harley-Davidson to move its business overseas so at that time the bike manufacturer would have to tolerate the tariffs.
The company said, “Increasing international production to alleviate the EU tariff burden is not the company’s preference but represents the only sustainable option to make its motorcycles accessible to customers in the EU and maintain a viable business in Europe.”
Harley-Davidson spokesman Michael Pflughoeft said, “We are currently assessing the potential impact on our US facilities. We are hopeful the US and EU governments will continue to work together to reach an agreement on trade issues and rescind these tariffs.”
Spokesman Tony Montana said, “Harley’s desire to improve sales both domestically and abroad predates the Trump administration’s tariffs, as does the company’s willingness to build assembly facilities overseas to avoid tariffs.”
Adding, “Not all barriers to trade originated with the current administration.”