Trump’s Trade War Prompts Harley-Davidson to Close Missouri Plant – Move That Production to Thailand

❝ In early 2017, President Donald Trump met with executives from Harley-Davidson who he thanked for “building things in America”…

❝ Last week, the EU imposed retaliatory tariffs on US goods, including bourbon, orange juice and motorcycles. The measures are a response to new US duties on steel and aluminium imports…

❝ While Harley-Davidson had been struggling financially well before the EU’s retaliatory tariffs went into effect, the import duties of 25% certainly didn’t help matters.

❝ “To address the substantial cost of this tariff burden long-term, Harley-Davidson 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…”

❝ The move is one of the most visible consequences of the trade disputes triggered by US President Donald Trump’s decision to levy tariffs on steel and aluminium imports.

Give our Fake President time. He’ll figure out how to make this even worse!

5 thoughts on “Trump’s Trade War Prompts Harley-Davidson to Close Missouri Plant – Move That Production to Thailand

  1. Born2B/wild says:

    “The Dow plunges as much as 496 points as trade tensions soar” http://markets.businessinsider.com/news/stocks/stocks-down-amid-trump-administration-trade-fights-2018-6-1027315453 “All three major US indices plummeted Monday, with the Dow Jones industrial average falling below its long-term moving average for the first time since Brexit, as protectionist policies by the Trump administration sent trade war fears soaring. The VIX, a measure of implied volatility, hit its highest level in two months. Treasury yields and the dollar fell.”
    See also “‘Somebody needs their head examined if they think this is good for the American economy’: Businesses are sounding the alarm on Trump’s tariffs” http://markets.businessinsider.com/news/stocks/trump-trade-war-hurting-business-texas-manufacturers-say-2018-6-1027315557

  2. 回报是屁话 says:

    Donald J. Trump @realDonaldTrump 3:28 PM – Jun 25, 2018: “Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag. I fought hard for them and ultimately they will not pay tariffs selling into the E.U., which has hurt us badly on trade, down $151 Billion. Taxes just a Harley excuse – be patient! #MAGA” http://thehill.com/homenews/administration/394041-trump-hits-harley-davidson-for-using-tariffs-as-excuse-for-moving
    The company cited that EU tariffs on motorcycles exported from the U.S. rose from 6 percent to 31 percent in recent weeks – adding $2,200 to the cost of the company’s average motorcycle.
    Harley Davidson expects the tariffs to cost $30M-$45M over the rest of this year and could cost $90M-$100M on a full-year basis. https://seekingalpha.com/news/3365959-harley-davidson-sees-eu-tariffs-adding-2200-average-motorcycle-cost
    Meanwhile one of the last remaining nail producers in the United States lost 50 percent of its business in the two weeks since Trump signed a new tariff on steel imports. At the beginning of June the company had roughly 500 people on staff, making it one of the largest employers in Missouri’s Butler County, but there is a possibility it may be completely out of business by Labor Day due to the tariff. http://www.newsweek.com/trump-steel-tariff-nail-industry-992834

  3. Highsider says:

    “Trump warns Harley-Davidson of ‘big tax’ for shifting some production abroad” http://thehill.com/homenews/administration/394105-trump-warns-harley-davidson-of-big-tax-for-shifting-some-production (tweet @ 5:37 AM – June 26, 2018: “…Harley must know that they won’t be able to sell back into U.S. without paying a big tax!”
    President of the United States of America Donald J. Trump again @ 6:17 AM – June 26, 2018: “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!”

  4. Footnote says:

    Harley-Davidson first announced that their plant in Kansas City would be closing in January 2018 — more than a month before Trump made his tariff decision. In fact, Harley had planned on consolidating production at the Kansas City plant since 2015, before Trump was even in office; when the company made the announcement, it said that it was due to slowing motorcycle sales. Additionally, Harley-Davidson announced in 2017 that it would be opening a manufacturing plant in Thailand. However, Harley said at the time that the decision was made to better serve the burgeoning market in southeast Asia, and that the decision would not affect manufacturing in the United States. [The Thailand plant will assemble bikes from components produced at the company’s U.S. facilities. Harley has similar operations in India and Brazil, where complete motorcycles are assembled from kits]. Snopes https://www.snopes.com/fact-check/harley-davidson-steel-tariffs/
    “Harley-Davidson profit tops estimates on overseas sales” (Reuters UK July 24, 2018) https://www.reuters.com/article/us-harley-davidson-results/harley-davidson-profit-tops-estimates-on-overseas-sales-idUSKBN1KE16P
    “Harley-Davidson sales slump as U.S. motorcycle business falters” (USA Today July 24, 2018) https://www.usatoday.com/story/money/2018/07/24/harley-davidson-motorcycles-earnings/824866002/ “The company recently said it was moving the production of motorcycles destined for Europe to factories in Thailand, India and Brazil in response to the European Union slapping a 31 percent tariff on motorcycles made in the U.S.”

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