Harley-Davidson will be moving some production of motorcycles bound for European customers out of the United States to avoid rising costs from European Union tariffs that were imposed as retaliation for President Trump’s new tariffs, the Associated Press reported.
The company said in a filing Monday that the EU tariffs on motorcycles exported from the U.S. rose from 6 percent to 31 percent, and said it stood to lose as much as $100 million a year.
“Increasing international production to alleviate the EU tariff burden is not the company’s preference, but represents the only sustainable option,” Harley-Davidson said in a regulatory filing on Monday.
Harley-Davidson Inc. said that it will not raise its prices due to “an immediate and lasting detrimental impact to its business in the region.”
The EU began imposing retaliatory tariffs Friday on $3.2 billion worth of American goods, including motorcycles, orange juice, bourbon, peanut butter, motorboats, cigarettes, and denim.
The measures came in response to Trump’s steep tariffs on imported aluminum and steel from the EU and other key U.S. allies, including Canada and Mexico.
CNN Money notes:
The company did not say whether any jobs are at risk. Harley-Davidson, based in Milwaukee, employed 5,800 workers at the end of 2017. It makes most of its motorcycles in the United States and has plants in Wisconsin, Pennsylvania, and Missouri. It also has facilities in Brazil, India, and Australia.
Europe is Harley-Davidson’s second largest market behind the United States. In 2017, nearly 40,000 European customers bought new Harleys, compared with about 148,000 in the United States.