25 June 2018•Update: 26 June 2018
By Michael Hernandez
WASHINGTON
Venerated U.S. motorcycle-maker Harley-Davidson announced Monday it is shifting some of its production to the European Union to stave off the effects of worsening trade relations sparked by President Donald Trump's decision to impose tariffs on the 28-nation bloc.
The EU last Friday began slapping the U.S. with retaliatory tariffs on goods including Harley-Davidson products following Trump's decision to hit the bloc with steel and aluminum duties.
The motorcycle company has long prided itself on its made-in-America image and said the decision to shift production to Europe was not its preference.
"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," the company said in a regulatory filing with the Securities and Exchange Commission.
Harley-Davidson sold roughly 40,000 motorcycles in the EU last year, making it the second largest market after only the U.S. and its largest foreign market.
The Milwaukee, Wisconsin-based company said if it did not send production to Europe, the additional cost for consumers in the continent would be roughly $2,200 per motorcycle.
"Harley-Davidson’s purpose is to fulfill dreams of personal freedom for customers who live in the European Union and across the world, and the company remains fully engaged with government officials in both the U.S. and the EU helping to find sustainable solutions to trade issues and rescind all tariffs that restrict free and fair trade," the company said.
Trump later ripped the company on Twitter, saying he is "surprised" Harley-Davidson "would be the first to wave the White Flag".
"I fought hard for them and ultimately they will not pay tariffs selling into the EU, which has hurt us badly on trade, down $151 Billion," he said. "Taxes just a Harley excuse - be patient!"
