Harley-Davidson to make motorcycles in Europe to avoid trade-war tariffs

Harley-Davidson said Monday that it will move some production of its iconic motorcycles to Europe to avoid new European Union tariffs imposed in an escalating trade dispute with the U.S., dealing an embarrassing blow to President Trump’s strategy for boosting domestic manufacturing and exports. The president, who has embraced the motorcycle company’s made-in-America ethos since the start of his administration, accused Harley-Davidson of waving the “white flag” of surrender and said it was using taxes as an excuse for the move. The Milwaukee-based company blamed its move on the tit-for-tat trade feud that began with the administration slapping a 25 percent tariff on EU steel and aluminum. The EU retaliated Friday with tariffs on $3.4 billion worth of U.S. goods, including a tax increase from 6 percent to 31 percent on motorcycles. The higher tariff would add about $2,200 eventually to the average cost of a Harley-Davidson motorcycle sold in Europe, which is the company’s second-biggest market after the U.S., the firm said in a regulatory filing...MORE