Tariff war: Harley to move some production out of US
Harley-Davidson, the American motorcycle manufacturer, said on Monday that it was shifting some of the production of its bikes outside the United States to avoid European Union tariffs imposed as part of a widening trade dispute. The announcement, made in a public filing, is an early sign of the financial cost to companies on both sides of the Atlantic as the United States and Europe impose tariffs and counter-tariffs on each other.
The moves have raised the specter of a full-blown trade war as the Trump administration pursues a protectionist tack with both allies, including the European Union, Canada and Mexico, and rivals, like China. Last week, the European Union imposed penalties on $3.2 billion worth of American products, many of which are produced in areas that form the heart of Trump’s political base, in response to steel and aluminium tariffs added by the White House.
Harley-Davidson said on Monday that European Union tariffs on its motorcycles had increased to 31%, from 6%. It estimated that the higher tariffs would add about $2,200 on average to every motorcycle exported from the US to the bloc, so it said it would move the production of bikes bound for Europe outside America.
“Harley-Davidson believes the tremendous cost increase, if passed onto its dealers and retail customers, would have an immediate and lasting detrimental impact to its business in the region, reducing customer access to Harley-Davidson products and negatively impacting the sustainability of its dealers’ businesses,” it said in the filing.
Harley-Davidson said the increase in tariffs would cost it an extra $30 million to $45 million for the rest of 2018. It said shifting its production outside the United States would take nine to 18 months.
The company said it planned to keep prices for European Union customers steady while that shift was in progress, meaning it would absorb any tariff costs. It did not say how jobs in the United States would be affected. The company, which is to give more details on the move next month, when it reports second-quarter earnings, has been moving some production overseas for years, somewhat eroding its image as an iconic American brand.
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Pradip Kumar Shome
If this be the case then factories after factories will move out from the coast of USA. How Trump can trumpet that he is saving US jobs?
Make it in India.
It should be an open market as companies cannot open factories in each country they want to sell their product to.
Mr. Trump is doing the best for USA. There is full employment in USA. Great job. Buy American Hire American
Is this the beginning of the end ? Will most companies take away their business from USA ?
Trump is the biggest choo tiya in America.
Let the avalanche begin!
Under another Trump governance in India, we spend several crores on advertising a slogan for "MAKE IN INDIA". Under this project, we have managed to make, corruption, joblessness, rapes, murder, currency devaluation, high inflation, communal intolerance, and not forgetting the placement of the life of a cow above that of the human citizen. We must also move out the production units of these 'make in India ' items to outside India.
Make in India
Madhu N R
Make in India and give jobs to Indian while you save your production cost and taxes
TRUMP is a visionary, a great statesman, patriotic to the core, not like our third class politicians. What ever he does is good for America. Good job Mr. Trump. Best wishes, long live
Let Harley-Davidson start a production unit in India under Make-In-India scheme to cater to the needs of Asia-Pacific Region. Then this tax problem will not be there.
Come, make in India. A vast Asian market awaits you!
The CEOs are tasted with Chinese Cheap Products. They are ready to l i c k China a s s. China should bring quota for US exports & increase price. US companies give 0.75 cents per hour to Chinese & get products cheap & sell 10 to 100 times profit & float in trillions of dollars. Apple is an example, its networth is $1 trillion in a mere of 1 decade.
Trump is a businessman and does not believe in Jumlas and does what he promises unlike other politicians worldwide who love minority appeasement and double standards
Where? Come to Bengal.
Please come and Make Harley in India. Sell them at reasonable price and make huge profits too..
Why is the Indian govt. restricting the COMMON INDIAN PUBLIC from owning a HARLEY DAVIDSON Motor Cycle. Whilst letting the rich Indians have it. USA & India should have FTA