Home Business News Harley-Davidson to shift some production out of US

Harley-Davidson to shift some production out of US

by Purvai Dua
25th Jun 18 2:43 pm

Amid the retaliatory tariff burden

Harley-Davidson is planning to shift some EU-bound motorcycle production from the US to its international facilities to avoid the retaliatory tariff burden, according to latest reports.

The EU is imposing tariffs on $3.2bn worth of American goods in response to the Trump administration’s tariffs on steel and aluminum imports from Europe. The group believes that the financial impact of these EU tariffs would be up to $100m per year.

“Harley-Davidson believes the tremendous cost increase, if passed onto its dealers and retail customers, would have an immediate and lasting detrimental impact to its business in the region, reducing customer access to Harley-Davidson products and negatively impacting the sustainability of its dealers’ businesses,” the group said in its filing today.

As a result, it said, it would not “raise its manufacturer’s suggested retail prices or wholesale prices to its dealers to cover the costs of the retaliatory tariffs.”

Instead, it will “be implementing a plan to shift production of motorcycles for EU destinations from the US to its international facilities to avoid the tariff burden.”

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