Harley Davidson will Shift Some Production from US Due to High Tariffs

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New York: Harley Davidson is planning to move some of its production or manufacturing facilities of motorcycles.

Harley Davidson will move the manufacturing of its motorcycles from the United States to avoid the retaliatory European Union tariffs. Earlier, the US President Donald Trump enacted by tariffs buffeted by higher steel costs. However, Donald Trump embraced Harley Davidson as the emblematic US Industrial organization in the beginning of his tenure. Company’s shares also dropped by 6.4% in the trading due to the company’s decision. The European Union imposed the 31% duty on American motorcycles. However, it increased the cost to EU customers by over $2,000.

According to sources, moving production to another location will take around 9 to 18 months. In the meantime, Harley Davidson will ingest the EU tariffs costs. Company officials revealed that the rising international manufacturing to alleviate the burden of EU tariffs is not their preference. However, it highlights the single sustainable option which will make their motorcycles accessible to the European customers. The company has manufacturing plants at different locations including India, Brazil, and Australia. In addition, it is also building another plant in Thailand.


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