Tuesday, 25 September, 2018

Ahead of 2+2 dialogue, Trump says India charges 100% tariff

Ahead of 2+2 dialogue, Trump says India charges 100% tariff Ahead of 2+2 dialogue, Trump says India charges 100% tariff
Jodi Jackson | 28 June, 2018, 11:22

"Other companies are coming back where they belong!"

While it will take some time to shift production overseas, the BBC reports Harley-Davidson won't pass the increased costs onto consumers as it doesn't want to jeopardize sales.

To avoid paying a 31% tariff to ship motorcycles from the U.S. to the EU, Harley made a decision to move more production to its plants in places like Thailand and Brazil. It was unclear what the president was referring to or how he could impose taxes on a single company.

Says Trump: "That was long before Tariffs were announced".

Then it appeared as if Harley-Davidson's chief executive was punching back with a quote disparaging Trump.

One day after the Wisconsin-based company said it was planning to shift some manufacturing overseas due to the European Union's tariffs in retaliation for U.S. duties, Trump accused Harley-Davidson of appropriating the trade war as an "excuse" for the move. Mr. Trump knows nothing about economics and even less about trade.

In January, Harley-Davidson said it would close a plant in Kansas City, Missouri, due to a sharp drop in US demand for its motorcycles, but said it would consolidate work done there into its plant in York, Pennsylvania.

We're not sure how patient Harley-Davidson can be, honestly. "Hence, they were just using Tariffs/Trade War as an excuse", he said.

Trump has also threatened Harley-Davidson with a "big tax" on bikes which are manufactured overseas and then imported into the US. Their employees and customers are already very angry with them.

The factory in Thailand, which will open later this year, would let Harley-Davidson avoid the country's up to 60 percent tariffs on imported motorcycles and help it get tax breaks while exporting to neighboring countries, according to the company. If they move, watch, it will be the beginning of the end - they surrendered, they quit!

The motorcycle manufacturer filed the paperwork Monday to move production of motorcycles sold to the European Union to a location outside the U.S. On Wednesday, Trump again took to Twitter to urge the company not to move any of its operations overseas and warning "we won't forget" the decision.

Harley-Davidson executives met with Trump at the White House past year after Trump canceled a visit to the company's headquarters in Milwaukee because protests had been planned.

"A Harley-Davidson should never be built in another country-never!" he said earlier on Twitter. "I understand that the President is a tough negotiator, but I urge him to consider a more targeted approach that protects American workers and businesses".

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