Harley-Davidson, Citing Tariffs, Will Shift Some Manufacturing Overseas
MILWAUKEE, WI—Harley-Davidson, stung by new tariffs, said on Monday that it will shift some motorcycle production to factories outside the U.S. According to CBS News, the motorcycle manufacturer is shifting production of motorcycles heading to Europe from the U.S. to overseas factories because EU tariffs on its motorcycles exported from the U.S. have surged from 6 percent to 31 percent.
Harley-Davidson said that it will not raise its prices due to "an immediate and lasting detrimental impact to its business in the region," although the tariffs are adding about $2,200 in costs per motorcycle exported from the U.S. to the EU.
The EU has boosted tariffs on American-made products, including Harley-Davidson motorcycles, peanut butter and orange juice in response to President Donald Trump's decision to slap tariffs on European steel and aluminum. The EU's trade chief said last week that it was "left with no other choice" after Mr. Trump imposed tariffs of 25 percent on steel imports and 10 percent on imported aluminum from the EU on June 1.
Harley-Davidson said that shifting targeted production from the U.S. to international facilities could take at least nine to 18 months to be completed. The company is already struggling with falling sales. In January, it said it would consolidate its Kansas City, MO, plant into its York, PA, facility. U.S. motorcycle sales peaked at more than 1.1 million in 2005 but then plummeted during the recession.