The President of the United States
reacted angrily to yesterday’s announcement by Harley-Davidson that the
Motor Company intended to manufacture the motorcycles it will sell in
Europe overseas.
In an SEC filing, the company said
“tariffs on Harley-Davidson motorcycles exported from the U.S. have
increased from 6% to 31%. Harley-Davidson expects these tariffs will
result in an incremental cost of approximately $2,200 per average
motorcycle exported from the U.S. to the EU.
“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.
Therefore, Harley-Davidson will not raise its manufacturer’s suggested
retail prices or wholesale prices to its dealers to cover the costs of
the retaliatory tariffs. In the near-term, the company will bear the
significant impact resulting from these tariffs, and the company
estimates the incremental cost for the remainder of 2018 to be
approximately $30 to $45 million. On a full-year basis, the company
estimates the aggregate annual impact due to the EU tariffs to be
approximately $90 to $100 million.”
Not everyone agrees with Harley’s
assessment. For one thing, the company sells status symbols rather than
basic transportation. And for another, those symbols are intended to
evoke an America as long ago as tail fins. People who aspire to own a
Harley aren’t necessarily deferred from buying one because they are
overpriced.
Trump
Among those who disagreed with the
company’s decision was Trump. He has tweeted about the move offshore
four times since the company made its announcement. Here, in
chronological order, is what he had to say.
“Surprised that Harley-Davidson, of all
companies, would be the first to wave the White Flag. I fought hard for
them and ultimately they will not pay tariffs selling into the E.U.,
which has hurt us badly on trade, down $151 Billion. Taxes just a Harley
excuse – be patient! #MAGA”
“Early this year Harley-Davidson said
they would move much of their plant operations in Kansas City to
Thailand. That was long before Tariffs were announced. Hence, they were
just using Tariffs/Trade War as an excuse. Shows how unbalanced &
unfair trade is, but we will fix it.”
“When I had Harley-Davidson officials
over to the White House, I chided them about tariffs in other countries,
like India, being too high. Companies are now coming back to America.
Harley must know that they won’t be able to sell back into U.S. without
paying a big tax!”
“A Harley-Davidson should never be built
in another country-never! Their employees and customers are already
very angry at them. If they move, watch, it will be the beginning of the
end – they surrendered, they quit! The Aura will be gone and they will
be taxed like never before!”
