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| Harley-Davidson to shift some bike production outside US | Harley-Davidson to shift some bike production outside US |
| (35 minutes later) | |
| Harley-Davidson plans to shift some motorcycle production away from the US to avoid the "substantial" burden of European Union tariffs. | Harley-Davidson plans to shift some motorcycle production away from the US to avoid the "substantial" burden of European Union tariffs. |
| Last week, the EU imposed retaliatory tariffs on US goods, including bourbon, orange juice and motorcycles. | Last week, the EU imposed retaliatory tariffs on US goods, including bourbon, orange juice and motorcycles. |
| Wisconsin-based Harley-Davidson has assembly plants in Australia, Brazil, India and Thailand. | Wisconsin-based Harley-Davidson has assembly plants in Australia, Brazil, India and Thailand. |
| The company said it would raise investment in its international plants, but did not say which ones. | The company said it would raise investment in its international plants, but did not say which ones. |
| "To address the substantial cost of this tariff burden long-term, Harley-Davidson will be implementing a plan to shift production of motorcycles for EU destinations from the US to its international facilities to avoid the tariff burden," the company said in an official filing to the US market regulator. | "To address the substantial cost of this tariff burden long-term, Harley-Davidson will be implementing a plan to shift production of motorcycles for EU destinations from the US to its international facilities to avoid the tariff burden," the company said in an official filing to the US market regulator. |
| Harley-Davidson said it expected the ramp-up in production to take nine to 18 months. | Harley-Davidson said it expected the ramp-up in production to take nine to 18 months. |
| The firm's decision is one of the most visible consequences of the trade disputes triggered by US President Donald Trump's decision to levy tariffs on steel and aluminium. | The firm's decision is one of the most visible consequences of the trade disputes triggered by US President Donald Trump's decision to levy tariffs on steel and aluminium. |
| The tariffs, which Mr Trump says are necessary to maintain national security, have drawn retaliation from the EU, Canada, Mexico, India and others, while driving up the cost of metals for manufacturers in the US. | The tariffs, which Mr Trump says are necessary to maintain national security, have drawn retaliation from the EU, Canada, Mexico, India and others, while driving up the cost of metals for manufacturers in the US. |
| US companies that range from boat-builders to nail manufacturers have warned about the consequences of escalating trade tensions. | US companies that range from boat-builders to nail manufacturers have warned about the consequences of escalating trade tensions. |
| However, the tariffs have also spurred investment in US steel plants. | However, the tariffs have also spurred investment in US steel plants. |
| For example, British-owned GFG Alliance, has said it plans to invest $5bn over several years to reopen a shuttered steel plant in South Carolina. The firm says the move will put about 125 people back to work "immediately". | For example, British-owned GFG Alliance, has said it plans to invest $5bn over several years to reopen a shuttered steel plant in South Carolina. The firm says the move will put about 125 people back to work "immediately". |
| 'Only sustainable option' | 'Only sustainable option' |
| Harley-Davidson, which has been focused on expanding its overseas sales amid challenges in the US, said it remained committed to US manufacturing. | |
| It said the tariffs made shifting production "the only sustainable option to make its motorcycles accessible to customers in the EU and maintain a viable business in Europe". | It said the tariffs made shifting production "the only sustainable option to make its motorcycles accessible to customers in the EU and maintain a viable business in Europe". |
| The company said the tariffs would add, on average, $2,200 (£1,660) to each bike exported to the EU from the US, as the import tax increases from 6% to 31%. | The company said the tariffs would add, on average, $2,200 (£1,660) to each bike exported to the EU from the US, as the import tax increases from 6% to 31%. |
| Harley, which sold nearly 40,000 motorcycles in Europe last year, said it planned to absorb those costs, which are expected to add $30m to $45m to its expenses this year. | Harley, which sold nearly 40,000 motorcycles in Europe last year, said it planned to absorb those costs, which are expected to add $30m to $45m to its expenses this year. |
| Passing the costs onto customers "would have an immediate and lasting detrimental impact to its business in the region", the firm argued. | Passing the costs onto customers "would have an immediate and lasting detrimental impact to its business in the region", the firm argued. |
| The majority of Harley's motorcycles are currently built in the US, where the firm employs about 2,100 people at manufacturing facilities. | The majority of Harley's motorcycles are currently built in the US, where the firm employs about 2,100 people at manufacturing facilities. |
| However, the firm had already announced plans to close a facility in Kansas City, Missouri - a decision workers said was due to the opening of a new facility in Thailand. | However, the firm had already announced plans to close a facility in Kansas City, Missouri - a decision workers said was due to the opening of a new facility in Thailand. |
| The company denied those claims, arguing the move was about boosting overseas sales. | The company denied those claims, arguing the move was about boosting overseas sales. |
| 'Headwind to hiring' | 'Headwind to hiring' |
| Mr Trump had made raising manufacturing employment a goal, but economists warn that the escalating trade tensions are likely to be counter-productive. | Mr Trump had made raising manufacturing employment a goal, but economists warn that the escalating trade tensions are likely to be counter-productive. |
| In addition to the metals tariffs, the Trump administration has also said it will impose tariffs on $34bn of Chinese goods starting on 6 July as punishment for violations of intellectual property protections. | In addition to the metals tariffs, the Trump administration has also said it will impose tariffs on $34bn of Chinese goods starting on 6 July as punishment for violations of intellectual property protections. |
| China is due to retaliate in kind. | China is due to retaliate in kind. |
| Mr Trump has also threatened tariffs on foreign cars and auto parts, arguing that firms should make such products in the US. | Mr Trump has also threatened tariffs on foreign cars and auto parts, arguing that firms should make such products in the US. |