President Donald Trump has said his administration is in talks with other motorcycle companies that are willing to move into the US after Harley Davidson decided to shift some of its operations overseas in the wake of the retaliatory EU tariffs against American duties.
The Wisconsin-based motorcycle manufacturer said on June 25 that tariffs imposed by the EU would increase the average cost per motorcycle by about USD 2,200 and the company, as a result, will shift some of its production overseas.
The European Union imposed the tariffs in retaliation against the Trump administration’s duties on steel and aluminum imports in an effort by Trump to protect US jobs.
“Now that Harley-Davidson is moving part of its operation out of the US, my Administration is working with other Motor Cycle companies who want to move into the US,” Trump said in a tweet on Tuesday.
“Harley customers are not happy with their move – sales are down seven per cent in 2017. The US is where the action is!” said the US President.
Earlier, Trump warned Harley-Davidson that it was going to take “a big hit” for moving some of its production overseas and, asserting that it was a shame that the company made the decision even though he got India to reduce import duties on the iconic motorcycles.
Trump has repeatedly raised the issue of high tariffs by India on high-end Harley-Davidson motorcycles, which in part is responsible for the current trade tension between the two countries.
In February, Trump had said that the Indian government’s decision to reduce the tariff on Harley-Davidson motorbikes from 75 per cent to 50 per cent was not enough and asked that it should be reciprocal, as the US imposes “zero tax” on the import of motorcycles.
Outside the US, Harley-Davidson has manufacturing facilities in India, Brazil and Australia.