Harley-Davidson and Trump at odds
The American president has been using his favourite ‘news’ forum – Twitter – to attack the company’s plans to start building bikes in Europe. And it's not fake news...The storm has been brewing, and following the announcement that the European Union has raised its tariff on American-made motorcycles from six to 31 per cent, open hostility has commenced.
The European Union decision, made in response to the Trump administration imposing duties on foreign steel, has prompted Harley-Davidson to declare that it will shift some of its production to Europe – following a pattern of overseas expansion that has already been happening for many years. Australia is even a part of that mix – well at least for a little bit longer…
The decision by Harley-Davidson has incensed Donald Trump, who made his displeasure clear in his favourite medium to engage with the American people – Twitter.
Trump sent three tweets on June 26, and he didn’t pull any punches:
A Harley-Davidson should never be built in another country-never! Their employees and customers are already very angry at them. If they move, watch, it will be the beginning of the end - they surrendered, they quit! The Aura will be gone and they will be taxed like never before!
— Donald J. Trump (@realDonaldTrump) June 26, 2018
....When I had Harley-Davidson officials over to the White House, I chided them about tariffs in other countries, like India, being too high. Companies are now coming back to America. Harley must know that they won’t be able to sell back into U.S. without paying a big tax!
— Donald J. Trump (@realDonaldTrump) June 26, 2018
Early this year Harley-Davidson said they would move much of their plant operations in Kansas City to Thailand. That was long before Tariffs were announced. Hence, they were just using Tariffs/Trade War as an excuse. Shows how unbalanced & unfair trade is, but we will fix it.....
— Donald J. Trump (@realDonaldTrump) June 26, 2018
As some American commentators have opined, Trump makes a lot of accusations, but is he onto something? And have the Trump tariffs given Harley-Davidson an opening to move into Europe, in line with its oft-mentioned goal to generate half of its revenue outside of the United States?
“I think they had this planned for some time. I think they are using this as an excuse,” Joe Capra of the International Association of Machinists & Aerospace Workers was quoted as saying by National Public Radio in America.
Capra is a union representative at a plant in Kansas City that will be closed next year at the cost of 800 jobs.
Harley-Davidson says it stands to lose as much as $100 million a year from new European Union taxes.
Will Trump continue to fire warning shots? Watch this space.
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Harley-Davidson building a factory in Thailand
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