CAUSE AND EFFECT

Trump Tariff Sends Harley-Davidson Production Overseas

EU tax on bikes was hiked to 31 percent from 6 percent.

Harley-Davidson will move some of its production outside of the U.S. after the company was hit by tariffs from the European Union. EU tariffs on the iconic motorcycles increased to 31 percent from 6 percent as part of a package of retaliatory measures announced by the bloc after the Trump administration hiked tariffs on U.S. steel and aluminum imports. Harley said the financial effect of the EU tariffs would be as much as $100 million per year, making the Milwaukee-based manufacturer one of the first U.S. companies to reveal the impact of the trade tensions between Washington and its allies. “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 a filing Monday morning. It will now implement a plan “to shift production of motorcycles for EU destinations from the U.S. to its international facilities to avoid the tariff burden.”