President Trump predicted Tuesday that Harley-Davidson would lose customers over its decision to move some of its production offshore, and accused the company of quitting the U.S. before his tough trade policy has a chance to work.
“A Harley-Davidson should never be built in another country — never!” Trump posted Tuesday on social media platform Twitter. “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!”
[Trump calls out Harley-Davidson for overseas production shift due to EU tariffs]
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!
— Donald J. Trump (@realDonaldTrump) June 26, 2018
The U.S. motorcycle manufacturer said a day earlier that it would move part of its operation overseas to evade retaliatory tariffs the European Union imposed after Trump placed stiff duties on steel and aluminum. Economists and corporate executives have long cautioned that the White House’s protectionist moves — including threats to place tariffs of 20 percent on European car imports and add 10 percent levies on as much as $400 billion of Chinese shipments — risk a trade war that would undermine the benefits of last year’s tax cuts and cost jobs.
An array of businesses have complained to lawmakers that they’re already losing money because of the duties and having to cut their workforces.
[Related: Big business CEOs fret that Trump’s tariffs could harm economic expansion]
Trump, however, says Harley is using tariffs as an excuse for relocating and had been planning the move before the EU’s tariffs were announced.
“Early this year, Harley-Davidson said they would move much of their plant operations in Kansas City to Thailand,” Trump tweeted Tuesday. “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…..”
Harley, in fact, did not say it would move its Kansas City, Mo., operations to Thailand. The company told investors in January that it was shuttering its Kansas City plant, cutting about 800 jobs, and consolidating its work with that of a plant in York, Pa., which would add about 450 positions. The motorcycle-maker also closed a plant in Adelaide, Australia, as it worked toward opening a factory in Thailand. It already has facilities in Brazil and India.
The manufacturer has said most of its operations remain in the U.S., but labor unions have bitterly criticized the closings and questioned whether the company was offshoring jobs. A company spokesman didn’t immediately respond to a message seeking comment.
“Harley-Davidson’s announcement today is the latest slap in the face to the loyal, highly-skilled workforce that made Harley an iconic American brand,” Robert Martinez, head of the International Association of Machinists and Aerospace Workers, said Monday. “This latest move is in keeping with Harley’s past decisions to open plants outside of North America. Will Harley use any excuse to ship jobs overseas? Does Harley even understand what ‘Made in America’ means?”
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…..
— Donald J. Trump (@realDonaldTrump) June 26, 2018
Trump also predicted the EU’s tariffs would soon be lifted as part of a negotiation, and said the goal of his trade policy is to get countries to move back to the U.S.
“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!” he wrote.
….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!
— Donald J. Trump (@realDonaldTrump) June 26, 2018
The White House didn’t respond to an inquiry about whether the president meant to threaten the company with punitive taxes or was referring to the impact of U.S. tariffs on goods shipped to the U.S. from overseas.
He did say separately that the company would pay high tariffs if it ever tried to send its bikes back to the U.S.
Harley-Davidson, which could avoid those by simply selling its U.S. customers bikes that are made in the country, fell 0.6 percent to $41.32 at the close of New York trading on Tuesday, stretching its decline so far this week to 6.5 percent.
The U.S. is the company’s largest market, accounting for more than 50 percent of sale. Europe, its second-biggest, comprises about 16 percent of revenue.
“The people that ride Harleys are not very happy with Harley-Davidson, and I wouldn’t be happy either,” Trump told reporters at the White House on Tuesday.
Complaining that he’d been “very good” to the company, the president said the majority of businesses are returning to the U.S., not leaving it, and argued that his policies are paying off handsomely in talks with U.S. trading partners.
“Nobody knows what’s going on behind the scenes,” Trump said. “They want to negotiate so badly, you wouldn’t believe it.”
