would add, on average, $2,200 (£1,660) to each bike exported to Europe from the United States as the import tax increases from 6% to 31%.

He says the ultimate goal should be no tariffs. Speaker Ryan, who is set to retire at the end of the year, is not a fan of Trump's tariffs and has spoken out against the trade war. The company has warned the president's tariffs on steel and aluminum will drive up raw materials costs.

"This latest move is in keeping with Harley's past decisions to open plants outside of North America", President Robert Martinez Jr said in an emailed statement.

In February, Harley-Davidson announced the recall of 251,000 motorcycles due to possible brake failures, a move estimated to have cost the company $25 million. Further, we can probably expect to see more American manufacturers shifting their overseas sales to production facilities outside of the United States.

The company chose to build the Thailand plant past year after Trump pulled out from the Trans-Pacific Partnership, which would have lowered import tariffs on its bikes in some of the fastest-growing motorcycle markets in Asia.

It said it would raise investment in its global plants, though it did not say which ones.


Spokesman Michael Pflughoeft told CNN that as of Monday Harley-Davidson was still "assessing the potential impact" on the company's 6,000-plus workforce that is mainly concentrated in Pennsylvania, Missouri and Wisconsin. The company says the European Union is its second largest market, after the United States. The EU says about $3.4 billion worth of US products are affected. "It also announced a future plant in Thailand".

The company said it will take a hit of $30 million to $45 million for the rest of this year.

On a full year basis, the company will face an extra $90-$100 million dollar in costs.

Bikes destined for the European Union were made less viable by levies that'll boost costs for the company by about US$100 million (NZ$145 million) a year. Shifting production to its non-U.

Harley-Davidson said that shifting targeted production from the USA to worldwide facilities could take up to 18 months to be completed. Targeting the country over allegedly unfair trade practices earlier this year, the president went all in, even threatening to stop trading with the nation of 1.3 billion people entirely.

Initial reaction from prominent Republicans on Capitol Hill highlighted unease with the president's tactics. But the proposed production shift appeared to mark an unintended outcome of USA tariffs imposed on European steel and aluminum earlier this month. US motorcycle sales peaked at more than 1.1 million in 2005 but then plummeted during the recession. The company said it may not survive past Labor Day if it doesn't get relief from the tariffs. Sales of the company's bikes have already been stung in recent years, with the initial bite of the recession followed by a general downturn in interest from Millennial riders. "I'm disappointed in Trump. We need to hold China accountable for its trade abuses, but that does not need to come at the expense of American workers and businesses". In fact, his policies may play a role moving them to the very country he wanted to defend the company against.


Skarich voted for Trump, as did 79 percent of surrounding Butler County.

Harley says in the filings that it will not raise MSRPs or wholesale dealership prices to make up for the losses connected to tariffs.

Trump's tweet on Monday is a sign the administration will continue placing blame on United States trading partners, even as American companies shift production or lay off workers amid escalating trade battles.

"The Chinese get a pass, and we pay a price", Skarich said.

"They have filed 24 separate exclusion requests, but there will not be enough time for them to potentially save their business", she said.


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