Economy

Harley-Davidson to shift motorbike production overseas over European Union tariffs

Harley-Davidson to shift motorbike production overseas over European Union tariffs

The American company Harley-Davidson will move the production of some motorcycles out of the United States to avoid rising costs from tariffs.

In response, Canada and Mexico enacted tariffs of their own, and last week, the European Union levied tariffs on some USA goods, specifically targeting iconic American brands like Harley-Davidson and Kentucky bourbon. Harley-Davidson maintains a strong commitment to US -based manufacturing which is valued by riders globally. The company did not comment on how many jobs would be shifted away from the US, but said that it would take between nine and 18 months to move production away from Wisconsin.

"We are now assessing the potential impact on our USA facilities", Harley-Davidson spokesperson Michael Pflughoeft told Bloomberg.

Harley-Davidson plans to move some of its motorcycle production outside the U.S. in response to retaliatory tariffs that include its products, Bloomberg reports.

Mid-Continent's orders for July are only 30 percent of what they were previous year, and Skarich is afraid that many of his lost customers will never return. Harley-Davidson shares sank more than 5 per cent in morning trading on Monday, its worst day in months.

The move follows a round of layoffs at the company's manufacturing plants in Milwaukee and Kansas City, Missouri, last year, costing 180 manufacturing jobs. "Most global trade is still in manufacturing, and the combination of the steel and aluminum tariffs, the coming China tariffs, and the various retaliatory actions are going to increase costs for many manufacturers", Alden said.

Monday's news comes roughly a year into Harley-Davidson's "The Journey" program.

More news: Dele Alli misses training for England at World Cup

The tariffs, which took effect Friday, are retaliation for taxes President Donald Trump imposed on European Union shipments of steel and aluminum. Most young people are too buried in student loans or the gig economy to shell out more than $20,000 for a part-time ride, so to prop up flagging popularity here at home, Harley-Davidson began trying to improve foreign sales.

Harley didn't specify which worldwide plants will boost output for European Union markets. But since then the company has been counting the costs of his trade policies.

Harley-Davidson bikes are lined up at a bike fair in Hamburg, Germany, February 24, 2017.

The story of William Harley and Arthur Davidson's brainchild turning into one of the most well-known motorcycle companies is a quintessential example of the American dream.

United Steelworkers, a labor union representing some of the motorcycle maker's USA employees, said Monday that Harley-Davidson had long since begun to shift its manufacturing operations overseas. Still, it's worth noting that the company has scaled back its American production lines in recent years in favor of opening a new plant in India, where motorbikes are highly sought, to get around a massive import tariff imposed there.

The Trump administration's tariffs have tended to target raw materials like steel or aluminum, or building block materials like solar modules. AshLee Strong says the best way to help American workers, consumers and manufacturers is to open new markets and not raise barriers.


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