US
EU Tariffs Drive Harley-Davidson To Move Some Bike Production Outside US
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Motorcycle manufacturer Harley-Davidson will shift some of its production outside of the U.S. in a move driven by new European Union (EU) tariffs, the company announced in a Securities and Exchange Commission filing on Monday.
The EU heightened tariffs on U.S.-manufactured items from 6 to 31 percent, meaning an increase “of approximately $2,200 per average motorcycle exported from the U.S. to the EU,” according to Harley-Davidson’s filing.
Harley-Davidson sold approximately 40,000 new motorcycles in Europe during 2017, making the region its “most important market” after the U.S., reported The New York Times.
The tariffs would cost the company up to $45 million for the remainder of 2018, Harley-Davidson said. Moving production of bikes for the European market out of the U.S. will take up to 18 months, reported Bloomberg.
This isn’t Harley-Davidson’s first time facing backlash for moving production outside the U.S. Union workers called the company’s announcement that it would open a Thailand production center “a slap in the face to the American worker” in May 2017.
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