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Harley-Davidson's plan to take production out of US criticized
US President critically evaluated plans of American motorcycles producer Harley-Davidson Inc to move production of bikes for EU customers outside of US, Reuters informs. In case if such plans are fulfilled, Donald Trump promised to impose additional taxes on the company and negative public judgment.
US President critically evaluated plans of American motorcycles producer Harley-Davidson Inc to move production of bikes for EU customers outside of US, Reuters informs. In case if such plans are fulfilled, Donald Trump promised to impose additional taxes on the company and negative public judgment.
Company’s shares lost 0,6% on Tuesday after dropping almost 6% on Monday.
On Monday Harley-Davidson Inc announced that it will move part of production from the US, since new EU tariffs, which became an answer to US duties on metals, will cost company from $90 to $100 million.
In January Harley-Davidson announced closure of the plant in Kansas City due to falling demand in the US. It is going to open plant in Thailand to serve growing Southeastern Asia’s market. This plant will help to escape import duties and get tax breaks in case of export into neighboring countries.
Announcement about Thailand factory came out after Trump exited Trans-Pacific Partnership, which could reduce import tariffs on Harley-Davidson’s bikes in some of Asian countries. Company is planning to substitute weakening demand in the US by new sales in Asian region.