The US-based Harley Davidson, faced with rising costs due to new European tariffs, announced that it will switch the production of engines designed for the European market from the United States overseas. The goal of moving production to overseas plants is to avoid EU customs barriers, AP reports.
European import tariffs from the US increased from 6 percent to 31 percent, the company said, adding that they would not increase their prices, although they would have to “jump” $ 2,200 based on these tariffs, as this could to have “lasting harmful consequences for the company’s operations in the region”.
Tariffs will, as reported, cost $ 30-45 million in Harley-Davidson in the rest of the current year, while at an annual rate this cost could reach $ 90-100 million.
US President Donald Tramp criticized Harley Davidson for making this decision.
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
Harley Davidson, probably the most famous motors manufacturer in the world, has been in existence since 1903, and has three factories in Wisconsin, and in Missouri and Pennsylvania.
The company is one of the few who survived the Great Depression, the economic crisis of the 1920s and 1930s, numerous ownership arrangements, subordinate agreements, poor financial conditions and poor quality of products, and global competition and became the legendary brand first of all known by loyal customers.