EU tariffs on Harley's motorcycles exported from the USA have surged from 6 percent to 31 percent, as the EU retaliates for tariffs the us has imposed on European steel and aluminum imports to the U.S.
The International Association of Machinists and Aerospace Workers, which represents workers at the company's facilities in Wisconsin, Missouri and Pennsylvania, expressed septicism that the production shift was needed.
European officials last week imposed stiff tariffs on a wide range of USA -made goods sold within the European Union. Trump's tariffs also raise costs on imported parts they need to manufacture in the United States.
The maker of the iconic American motorcycle said in a regulatory filing on Monday that European Union tariffs on its motorcycles exported from the U.S. jumped between 6 per cent and 31 per cent, which translates into an additional, incremental cost of about $US2,200 ($3,000) per average motorcycle exported from the United States to the EU.
"Taxes just a Harley excuse", Trump added.
"Unfortunately, this confirms my concerns and is a far too predictable outcome of policies that give companies like Harley-Davidson incentives to make their products elsewhere", Johnson said in a statement.
The company estimates the tariffs will result in $30 million to $45 million in additional costs this year and $90 million to $100 million on an annualized basis.
The company said ramping up production in global plants would require incremental investment and could take at least nine to 18 months to be fully complete. From the company's statements, it plans to continue to manufacture parts for motorcycles in the USA and ship them to Thailand for assembly, as it does for facilities in Brazil and India.
In 2017, Harley sold almost 40,000 new motorcycles in Europe which accounted for more than 16% of the company's sales previous year.
The Wisconsin-based motorcycle firm announced on Monday it would shift production of motorcycles intended for European consumers out of the United States, hoping to avoid European Union retaliatory tariffs.
"Early this year Harley-Davidson said they would move much of their plant operations in Kansas City to Thailand". The president hailed the company as a model of American manufacturing, an industry he promised to restore.
Harley-Davidson employs more than 6,000 people globally.
Harley-Davidson expects ramping-up production in worldwide plants will require investment and will take at least 9 to 18 months to be fully complete.
The statement seemed to suggest that the president expects to negotiate a resolution of his complaints about EU trade practices, which he blames for the $151 billion US merchandise trade deficit with its European allies. The affected American motorcycle brands will certainly be Harley-Davidson and Indian Motorcycle, which will see higher sticker prices in Europe, and is certain to affect sales.
Shares in Harley-Davidson were down by 4.1 percent to $42.38 (£31.92) shortly after the market opened. Who knows? Since no one in the White House seems to understand how worldwide trade works, and we've seen how capricious and easily distracted The Donald is, it's 50/50 whether or not the tariffs go into effect or he gets distracted by a squirrel and forgets all about them. Daimler AG warned last week that escalating tension between the us and China will impair earnings its Alabama SUV plant and lower profit this year. The company, which is headquartered in Speaker Paul Ryan's congressional district, is moving some production to Europe to avoid the tariffs.
In February 2017, Trump welcomed Harley executives and workers to the White House, where he celebrated the company's success and predicted more to come.
The EU said Friday that it would counter the tariffs with penalties of their own on $3.2 billion of American-made goods.