Harley-Davidson packs arms and baggage and moves part of its production out of the United States in order to try to stem the effects of European tariffs.
The Milwaukee motorcycle manufacturer has calculated the financial impact of the new tariffs imposed by the European Union in response to the duties imposed by Donald Trump on steel and aluminum made in Europe. According to the numbers, the cost of the war to trade on the US motorcycle manufacturer could be as high as 100 million dollars.
Harley estimates that each of its bikes will cost an average of $2.200 more due to the 6% to 21% tariff hike that went into effect June 22. In order to avoid dumping the increases on consumers, the company "will transfer the production of motorcycles for the EU from the US to its international structures to avoid the burden of tariffs". The announcement is contained in a document filed by the group with the US stock exchange authority. Over the next 18 months Harley will therefore increase production in its plants located in Australia, Brazil, India and Thailand.
"Increasing international production to alleviate the effect of EU tariffs is not the solution preferred by society - continues the statement -, but it represents the only viable option to make motorcycles accessible to consumers in the EU".
The group clarified that it will bear the cost increase in the near term and that it expects to take a $30-45 million hit for the remainder of 2018.
