Donald Trump Warns Harley-Davidson, Says 'We Won't Forget'
28 June, 2018, 17:22 | Author: Sally Reid
In a series of caustic early-morning tweets Trump dismissed any notion that his policies were responsible for Harley-Davidson's move. He added: "I've done so much for you, and then this". "We are getting other countries to reduce and eliminate tariffs and trade barriers that have been unfairly used for years against our farmers, workers and companies".
Trump says on Twitter, "We won't forget, and neither will your customers or your now very HAPPY competitors!"
Harley on Wednesday responded while sidestepping the controversy and not commenting on the president's tweets. But company spokesman Michael Pflughoeft said it was assessing the potential impact of the production shift on its USA facilities.
On Monday, Harley-Davidson in its US Securities and Exchange Commission (SEC) filing had said that the new retaliatory tariffs by the European Union (an increase from six per cent to 31 per cent) will result in an incremental cost of approximately $2,200 on an average motorcycle exported from the US to the 28-member trading bloc.
"We don't want to punish, but that is the unfortunate effect, that (US companies) will put pressure on the American administration to say hey, hold on a minute, this is not good for the American economy", EU Trade Commissioner Cecilia Malmstrom said at a news briefing.
The Milwaukee-based company said on Monday it will move production of motorcycles shipped to the European Union from the United States to its global facilities and forecast that the trading bloc's tariffs - introduced as a counter to Trump's tariffs on some EU-produced metals - would cost the company $90 million to $100 million a year.
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In an emerging trade war sparked by United States steel and aluminum tariffs on American allies, the European Union responded with levies on a series of American products including motorcycles, bourbon and blue jeans.
Trump says in tweets Tuesday that the company had already announced it was closing a Kansas City plant. Harley must know that they won't be able to sell back into US without paying a big tax! Now the European Union has made a decision to target Harley for increased tariffs in response to Trump's trade war. The company has said ramping up production overseas could take at least nine to 18 months.
Harley-Davidson should stay 100% in America, with the people that got you your success. "Now they are trying to use the tariffs to excuse and deflect from that decision".
The president has repeatedly attacked Amazon.com Inc over what he sees as its unfair treatment of the U.S. Postal Service, and he has complained about the high costs of Boeing Co's replacements for Air Force One aircraft, urging the federal government to cancel the order.
It was a stark contrast from February 2017, when Harley-Davidson executives visited Trump at the White House, even participating in a photo-op with Trump.
Harley-Davidson executives met with Trump at the White House past year after Trump canceled a visit to the company's headquarters in Milwaukee because protests had been planned.
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Trump said he's getting other countries to reduce and eliminate tariffs and trade barriers, and to open up markets. He also threatened Harley that if they don't reverse their decision , they would face harsh consequences.
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