Wednesday, 18 July, 2018

Harley-Davidson Announces Overseas Move, Cites Tariffs

Harley-Davidson to take big hit from EU tariffs Harley-Davidson To Move More Production Oversees Amid US-EU Trade Tensions
| 26 June, 2018, 16:16

The United States earlier this month imposed tariffs on steel and aluminum imports from the European Union, provoking a "tit-for-tat" response from the trading bloc against US goods.

Already, Harley had announced plans to close a factory in Missouri and build one in Thailand, after Trump pulled the U.S. out of the Trans-Pacific Partnership, the free-trade agreement with a bloc of Asian countries including New Zealand that would have lowered barriers to key markets.

American President Donald Trump had frequently embraced the firm as an emblematic USA industrial company, but Harley-Davidson's decision to move some work overseas to avoid retaliatory European Union duties left him disappointed.

Harley said in a Monday filing that European Union tariffs on its motorcycles built in the USA just jumped from 6% to 31%, adding roughly $2,200 to the cost of each.

Retaliation by Brussels targeted producers in Republican states where Trump draws much of his support - including bourbon whiskey, Levi's jeans - and is expected to raise the prices of USA goods worth up to €2.8bn (£2.5bn).

A motorcycle is seen at the Harley-Davidson Museum in Milwaukee on August 31, 2013.

Executives in Harley-Davidson were among the first to visit the White House in February 2017 shortly after Trump took office. A trade war, we'd like to remind you, that he promised would be easy to win. But in the short term, further escalation of the trade dispute seems likely.

Harley's desire to improve sales both domestically and abroad predates the Trump administration's tariffs, as does the company's willingness to build assembly facilities overseas to avoid tariffs.

"This latest move is in keeping with Harley's past decisions to open plants outside of North America", President Robert Martinez Jr said in an emailed statement.


Struggling to overcome a slump in U.S. demand, Harley has been aiming to boost sales of its iconic motorcycles overseas to 50% of total annual volume from about 43% now.

Treasury Secretary Steven Mnuchin Monday morning labeled press reports about the forthcoming announcement "fake news" and said any new measures would apply to "all countries that are trying to steal our technology", not just China.

"Increasing global production...is not the company's preference", the statement said. "I expect many other companies will be forced reluctantly to move production as Harley has done in order to maintain their viability".

The company did not say whether any jobs are at risk. A company spokesman did not immediately respond to a request for comment. "Harley must know that they won't be able to sell back into USA without paying a big tax!"

It had already announced plans to close a plant in Kansas City, Missouri - a decision which workers claimed was due to the opening of a new facility in Thailand. "It also announced a future plant in Thailand".

Instead of raising prices for consumers, the company says it will take a hit of $30 million to $45 million in 2018.

Moving production overseas is expected to require nine to 18 months, so in the near-term Harley-Davidson will absorb the costs of European Union tariffs, the company said in a regulatory notice.

Harley-Davidson, which has been focused on expanding its overseas sales, said it remained committed to U.S. manufacturing.

Recommended

  • With Quill Protection Gone, What Should Online Sellers Do?

    With Quill Protection Gone, What Should Online Sellers Do?

    What it means for out-of-state retailers is that sales tax nexus is no longer exclusively based on a physical presence standard. Brey, who also has an online business, has closed three stores. "They've been getting an unfair advantage for 20 years".
    Brazil beat Costa Rica 2-0 to secure first win

    Brazil beat Costa Rica 2-0 to secure first win

    The world's most expensive player was making just his 4th appearance after breaking a bone in his foot in February. La Sele will play its final World Cup 2018 game against Switzerland on Wednesday at 12 pm Costa Rica time .
    Alli remains a doubt for Panama clash

    Alli remains a doubt for Panama clash

    The Red Devils were kept at bay in a niggly first half before Dries Mertens opened the scoring within seconds of the re-start. They try and shoot themselves in the foot [at] every World Cup they go to.
  • 'Zero Tolerance' Remains in Effect as First Lady Visits Migrant Kids

    'Zero Tolerance' Remains in Effect as First Lady Visits Migrant Kids

    At the facility the first lady talked with staff about how the children were being treated and asked how she could help. The jacket read, "I REALLY DON'T CARE, DO U?" "DO U?" as she departed the White House to visit the shelter in Texas.
    VAR drama, Neymar breaks down in dramatic win

    VAR drama, Neymar breaks down in dramatic win

    Before he does that there is a team that has to be strong and not dependent on him. "He's going to reach the top, you'll see". He was three-and-a-half months out with injury. "He's human, he needs time", Tite said.
    New Zealand prime minister gives birth to baby girl

    New Zealand prime minister gives birth to baby girl

    She is thanking the nation for best wishes and kindness - and says she is doing well thanks to the team at Auckland City Hospital. Political parties have been quick to acknowledge the news, with National leader Simon Bridges congratulating Ardern.
  • Colombia boost World Cup last-16 hopes by eliminating Poland

    Colombia boost World Cup last-16 hopes by eliminating Poland

    There will be a weight of expectation on his shoulders when Colombia face Senegal in their final group game on Thursday. Given his first start after fully recovering from a calf injury, Rodriguez lived up to expectations.
    Priyanka Chopra and Nick Jonas PDA game going strong!

    Priyanka Chopra and Nick Jonas PDA game going strong!

    Indian Bollywood actress Priyanka Chopra (L) and United States singer Nick Jonas (R) stand together in Mumbai on 22 June 2018. Later, in the night, Nick and Priyanka were chilling in the balcony of her Juhu residence while she was enjoying the rains.
    President Trump threatens new tariffs on $200 billion in Chinese imports

    President Trump threatens new tariffs on $200 billion in Chinese imports

    American semiconductor makers saw larger losses at 2 percent or more due to their high exposure in China, according to CNBC . China said it would impose such tariffs following Washington's 25 percent tariff on Chinese goods worth 50 billion dollars.
  • Japan rallies to tie Senegal at World Cup

    Japan rallies to tie Senegal at World Cup

    Our team has the quality to face Colombia", he added, looking forward to Thursday's meeting with the South Americans in Samara. Kawashima punched a shot he should have caught and the ball ricocheted off Mane's knee and in to give Senegal a deserved lead.
    International Yoga Day: CM Fadnavis along with Vice President Indulge in Yoga

    International Yoga Day: CM Fadnavis along with Vice President Indulge in Yoga

    On this day, which is dedicated to the inner and outer well-being of human body, people across the world practice yoga in groups. While Narendra Modi performed yoga in Dehradun , leaders and politicians across the country hosted similar events.
    Trump jabbed first, and now world hits back in trade fight

    Trump jabbed first, and now world hits back in trade fight

    Mexico placed tariffs on American products ranging from steel to pork to bourbon two weeks ago. Trump is also looking at new tariffs on auto imports, opening a new front in the trade war.

James Harden named NBA Most Valuable Player James Harden named NBA Most Valuable Player Gobert averaged 13.5 points, 10.7 rebounds and 2.3 blocks per game - the latter of which was good enough for third in the league. Does Ben Simmons have the edge for Rookie of the Year? Lou Williams of the Los Angeles Clippers took Sixth Man honors.

USA says It Knows Location of Migrant Children Separated from Parents USA  says It Knows Location of Migrant Children Separated from Parents Coffman said in an interview. "There are already people being removed with a truncated process". Nor was it clear whether any immigrant children who had been transferred to the U.S.

Samantha Bee Reveals The Withheld 'Recording' From Stephen Miller's NYT Interview Samantha Bee Reveals The Withheld 'Recording' From Stephen Miller's NYT Interview Miller is widely believed to be one of the most fervent defenders of anti-immigrant policy within the White House. Coppins wrote that Miller is motivated not to persuade the public of his opinions, but to "agitate" them instead.

Kane fires England to record 6-1 win against Panama Kane fires England to record 6-1 win against Panama A similar situation could arise in Group B too, as Spain and Portugal have identical records at the time of writing as well. The Group A winners will play the Group B runner-up, after which Group B winners will play Group A's second place finisher.

Marin Cilic stuns Novak Djokovic to take Queen's title Marin Cilic stuns Novak Djokovic to take Queen's title The Croatian snatched at the opportunity as he won six points in a row to take the match to a third set. Djokovic said when asked how he would cope with the power of Cilic's serve.

Supreme Court Decision Will Cost Consumers Supreme Court Decision Will Cost Consumers Kosewicz pays $3,600 a year for tax collection software to handle payments and reports to her home state, Washington. Hatlestad says the small businesses that are the economic backbone of the community should benefit from the change.

Romelu Lukaku criticism: Eden Hazard explains comments on Belgium star Romelu Lukaku criticism: Eden Hazard explains comments on Belgium star "But at the end of the game, we won 3-0, so we have to be happy", Hazard continued. "But I liked the way we reacted as a team". England will face Tunisia. "Of course, we want to demand from each other, and that's natural, what happens in a dressing room".

Durbin: Chicago shelters housing 66 children victimized by ‘cruel’ border policy Durbin: Chicago shelters housing 66 children victimized by ‘cruel’ border policy In a press conference on Thursday, Minority Leader Nancy Pelosi called the compromise bill a "compromise with the devil". CNN then returned to coverage of illegal immigrant families being separated after crossing the U.S. border.

Pair of goals by Musa helps Nigeria take out Iceland Pair of goals by Musa helps Nigeria take out Iceland Striker Odion Ighalo promised Nigeria would be on the front foot after managing only two chances on target against Croatia. Ahead of their encounter with La Albiceleste on Tuesday, Babayaro is confident of Gernot Rohr's men winning the encounter.

UN says over 25,000 people fled Yemen fighting at Hodeida UN says over 25,000 people fled Yemen fighting at Hodeida Around two-thirds of the country's population of 27 million relies on aid and 8.4 million are already at risk of starving. Turki al-Malki, a coalition spokesman, said its forces took over the airport and are clearing Houthi land-mines.

Trump's order stopping separation of immigrant families explained Trump's order stopping separation of immigrant families explained A court order said that the families can not be kept in custody by the Department of Homeland Security for more than 20 days. Trump's executive order requires the Pentagon to make military bases near the border available to detain immigrant families.

Shaqiri snatches last-gasp 2-1 win for Swiss over Serbia Shaqiri snatches last-gasp 2-1 win for Swiss over Serbia After holding off Brazil in their opening contest, Switzerland will be eager to pick up their first win at the expense of Serbia . Shaqiri scored a late game-winner and Swiss fans lost their minds.

South Korean Exchange Bithumb hacked, $30 Million Stolen South Korean Exchange Bithumb hacked, $30 Million Stolen Bithumb's blog post reads "Due to security issues; we are changing our system regarding deposits of cryptocurrency". This latest hack, though, further highlights the risks that cryptocurrency exchanges face from criminals.

United Methodist clergy, members file complaint against Jeff Sessions United Methodist clergy, members file complaint against Jeff Sessions Those in criminal proceedings are guaranteed a (now severely overworked) public defender, but those in civil immigration courts are not.

Prince William birthday: How is Kate Middleton's husband celebrating turning 36? Prince William birthday: How is Kate Middleton's husband celebrating turning 36? The Duchess of Cambridge, 36, is now on maternity leave following the birth of their third child, Prince Louis . Welby also had the honor of officiating Prince Harry and Meghan Markle's wedding last month.