Harley, blaming tariffs, will shift some manufacturing overseas

Harley-Davidson, stung by new tariffs, said it will shift some motorcycle production to factories outside the U.S.

The motorcycle manufacturer said in a regulatory filing that it’s shifting production of motorcycles heading to Europe from the U.S. to overseas factories. 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. 

“In the near-term, the company will bear the significant impact resulting from these tariffs, and the company estimates the incremental cost for the remainder of 2018 to be approximately $30 to $45 million,” Harley said in the filing.

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