Rows of motorcycles are behind a bronze plate with corporate information on the showroom floor at a Harley-Davidson dealership in Glenshaw, Pennsylvania, April 26, 2017.
Trump was surprised by Harley's plans but the motorcycle maker has concerns of its own. "The Aura will be gone and they will be taxed like never before!" Harley Davidson's decision to move production overseas is a direct result of President Donald Trump's approach to trade negotiations, according to Vox, who also placed the burden of the escalating trade war square on the shoulders of Trump. That was long before Tariffs were announced.
Harley shares have lost about 6 per cent since early March when the trade skirmish between the United States and the European Union started, and are down over 15 per cent since the end of 2017.
The publication notes that the motorcycle manufacturer doesn't want to raise prices over fears that it will lose customers to its competitors.
Mary Lovely, a senior fellow at the Peterson Institute for International Economics, and Yang Liang, a graduate associate at the Moynihan Institute of Global Affairs, highlighted the possibility that companies will abandon the U.S. in a recent policy paper.
Harley-Davidson representatives did not immediately return a request for comment. The company said the shift will require additional investment and could take nine to 18 months to complete. The county went for Mr. Trump in 2016, but it's now wrestling with the consequences of China's new 15% retaliatory tariff.
Europe implemented tariffs on the imports of USA goods, including motorbikes and bourbon, in response to Donald Trump's tariffs on steel and aluminium.
Lovely said Harley and other companies face retaliatory tariffs in Europe and elsewhere if they try to export products.
Nigeria vs. Iceland live stream
They must avoid defeat against Argentina on Tuesday if they are to stand any chance of reaching the knockout stages. The Super Eagles take on Iceland on Friday, June 22 at the Volgograd Stadium Kick off 4PM Nigerian time.
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. Analysts at Moody's reckon a 25 percent tariff on imported vehicles and parts would be negative for most of companies including Ford Motor Co and General Motors Co. Trump said in a post on Twitter on Monday night. I fought hard for them and ultimately they will not pay tariffs selling into the European Union, which has hurt us badly on trade, down $151 Billion.
Harley-Davidson said Monday that European Union tariffs on its motorcycles had increased to 31 per cent from 6 per cent.
The company sees an annual impact due to the tariffs of about $90 million to $100 million and expects an incremental cost of about $2,200 per average motorcycle exported from the United States to the EU.
Mid-Continent Nail imports from Mexico most of the metal wire it uses to make nails.
Harley estimated facing US$30 million to US$45 million in costs linked to the tariffs for the remainder of 2018.
The company claimed the EU's action increased the tariffs on its motorcycles from six percent to 31 percent. Other firms don't have that choice and won't generate front-page headlines about the pain caused by Trump's trade war.
But the firm defended its actions after it emerged it could incur and extra $2,200 dollars (£1,658) per motorcycle if it kept exporting from the United States to Europe.
Hours after Mnuchin's tweet, Peter Navarro, head of the White House office of trade and manufacturing policy, appeared to contradict the treasury chief.