President Donald Trump took to Twitter early Tuesday morning, lambasting Harley-Davidson for what he termed “surrendering” and “quitting” after the company’s announcement Monday that it is moving some operations overseas to get around tariffs in the ongoing trade dispute.
Recently imposed tariffs on imported aluminum (10 percent) and steel (25 percent) are at the heart of the matter as Trump tries to level the playing field and reduce trade deficits between the U.S. and its partners. The penalties have spurred other countries to respond in kind, leveling tariffs against a number of American products and companies like Harley-Davidson to put pressure on the president’s constituents.
Trump strongly denies his trade policy is responsible for the company’s decision to shift some production overseas, claiming Harley-Davidson had already planned to move before the tariffs were announced.
“Early this year Harley-Davidson said they would move much of their plant operations in Kansas City to Thailand. That was long before Tariffs were announced. Hence, they were just using Tariffs/Trade War as an excuse. Shows how unbalanced & unfair trade is, but we will fix it,” Trump said in the first of a series of tweets.
“We are getting other countries to reduce and eliminate tariffs and trade barriers that have been unfairly used for years against our farmers, workers and companies. We are opening up closed markets and expanding our footprint. They must play fair or they will pay tariffs!”
Early this year Harley-Davidson said they would move much of their plant operations in Kansas City to Thailand. That was long before Tariffs were announced. Hence, they were just using Tariffs/Trade War as an excuse. Shows how unbalanced & unfair trade is, but we will fix it…..
— Donald J. Trump (@realDonaldTrump) June 26, 2018
….We are getting other countries to reduce and eliminate tariffs and trade barriers that have been unfairly used for years against our farmers, workers and companies. We are opening up closed markets and expanding our footprint. They must play fair or they will pay tariffs!
— Donald J. Trump (@realDonaldTrump) June 26, 2018
Trump then went on to deliver a stern warning to Harley-Davidson, saying it will pay a stiff tax if the company tries to ship motorcycles back to the U.S. from overseas.
“When I had Harley-Davidson officials over to the White House, I chided them about tariffs in other countries, like India, being too high. Companies are now coming back to America. Harley must know that they won’t be able to sell back into U.S. without paying a big tax!” he said.
….When I had Harley-Davidson officials over to the White House, I chided them about tariffs in other countries, like India, being too high. Companies are now coming back to America. Harley must know that they won’t be able to sell back into U.S. without paying a big tax!
— Donald J. Trump (@realDonaldTrump) June 26, 2018
The president then upped the ante, warning the company that moving operations overseas will be the “beginning of the end,” and threatened even more punitive taxes.
“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!” he said.
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!
— Donald J. Trump (@realDonaldTrump) June 26, 2018
Harley-Davidson spokesman Michael Pflughoeft announced in May 2017 it would open a plant in Thailand as part of the company’s long-term goal to grow its international business, and to “allow us to be competitive and provide riders greater access to our brand and our products in an expanding global marketplace.”
On Monday, the company said motorcycles sold in Europe will move from U.S. factories to facilities overseas as a consequence of the retaliatory tariffs the EU is imposing on American exports. The $3.4 billion in tariffs on U.S. goods also include bourbon, peanut butter and orange juice.
Harley-Davidson said in a regulatory filing Monday that the EU tariffs on its motorcycles exported from the U.S. jumped between 6 and 31 percent, adding about $2,200 to the average cost of a bike in Europe. Harley-Davidson sold nearly 40,000 motorcyles in the EU in 2017, its second-largest market only to the U.S.
Trump also took to Twitter on Monday to blast the announcement, saying the company was giving up.
“Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag,” he said. “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.”
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
— Donald J. Trump (@realDonaldTrump) June 25, 2018
Harley-Davidson declined further comment Monday, saying only that it will not pass the increase on to consumers and will instead absorb a significant amount of the cost in the short term, about $30-45 million. Shifting production overseas will take up to 18 months, the company said.
The Associated Press contributed to this report.