Trump’s trade war has officially moved American jobs overseas.
S E E D E D C O N T E N T
Photo: Europe is second to only the United States as Harley-Davidson’s most important market. To mitigate the impact of a widening trade dispute, the company is moving some of its manufacturing out of the United States. President Trump has often lauded the company as an American icon and job creator. Credit Drew Angerer/Getty Images
In a regulatory filing on Monday, iconic motorcycle manufacturer Harley-Davidson (HOG) said it is moving the production of motorcycles bound for the EU out of the U.S. as a result of new tariffs.
Harley-Davidson said that tariffs enacted by the EU in response to Trump’s tariffs on the import of steel and aluminum from the EU increased the duty paid by Harley Davidson’s Europe-bound bikes made in the U.S. to 31% from 6%.
This will increase the cost of an average motorcycle by $2,200, the company said.
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Iconic motorcycle manufacturer Harley-Davidson (HOG) said it is moving the production of motorcycles bound for the EU out of the U.S. as a result of new tariffs.
<Please do not read any politics into this post>
Really, I wonder how much of this is related to the tariffs?
For example we know Ford is shifting the bread and butter Focus production to China and the sporty RS and ST production to Europe while axing the Fusion.
GM is moving Buick production to China.
All of this was put in motion several months ago.
In my mind, for Harley to make this announcement now, is too close on the heals of the Tariff announcement. A lot of things need to be put in place prior to announcements like these.
HD stated that they are moving the production because of the tariffs. No doubt about it.
Alright, that settles that.
Thanks.
I saw this coming when the stories about tariffs began surfacing. HD was one of three initially mentioned the the tariffs would affect.
Yes it does.
You're welcome.
Maybe you read something I didn't post.
This follows HD's announcement that they are closing their KC MO. production plant...800 jobs gone.
Harley had already announced this plan last year........but it seems that it suits the media's storyline to make this 'because of Trump'.
I'll continue riding my Indian, as one of the only real American Bikes left out there......
.
Well at least you got the "because of Trump" part correct.
.
Harley-Davidson says it is moving some production out of U.S. to avoid EU tariffs
Some refuse to see the writing on the wall.....this blind devotion is simply baffling to me.
But, but, but the tax cuts were supposed to eliminate this.....yeah right.
And although Trump’s desire to re-write many of the U.S.’s major trade agreements has been a foundation of his political agenda since his campaign began more than three years ago, it wasn’t until the beginning of this year that markets began to take these threats seriously.
Gapen added that, “What is also clear to us is that protectionism will cut against the benefits of the recently enacted Tax Cut and Jobs Act. Anti-trade policies, particularly tariffs, act like a tax on consumers and businesses by raising the cost of trade. By creating uncertainty, they also weigh on asset valuations, which could weaken households’ ability to sustain spending and reduce the incentive for businesses to invest.”
What the rest of the world will do is just keep chugging along without us.
trump wants so called protectionism, we will end up with isolationism.
Trump is getting slammed on Twitter:
MAGA!!!!!!!!!!!!!!!!!!!!
Motorcycles Are Going Away...
Trump:
Trade Wars are good and easy to win!
And a British owned steel plant in South Carolina has been reopened to avoid the tariffs.
I don't like the idea of tariffs but I think you have to take a longer view of these things. You can't turn around after a month and declare victory or complete failure.
The jury's still out on Trump's trade wars? Ok, I'll accept that, but I want the President to make educated decisions when forming economic policy. I want him to talk to economists, hear opposing views, and at least try to make the best moves. Trump listens to no one, and changes things for no other reason than to oppose anything and everything Obama supported.
You shouldn't--because Trump's assertion that his tariffs will help is totally false.In fact, my guess is that its only a matter of time where he reverses his tariffs, as so many Americans will be hurt.
P.S: Watch for rising opposition to these tariffs from Republicans... as more and more people in their districts lose jobs....
… and blames them on Obama.
And he will still understand global economies no better than I do. The difference is, I understand my limitations
Of course-- no surprise there!
American tariffs on steel help the U.S. steel industry. But they hurt other American businesses who use steel.
And of course since they make steel more expensive, (as well as finished products using steel) these tariffs hurt consumers.
P.S: The American steel producers who are helped are only a small part of the total economy. So net-net, steel tariffs hurt many more Americans than they help. Many many more jobs will be lost amongst so many sectors of the economy-- while only a relatively small number will be created).
More bs from orange conman toddler in chief. NOTHING is EVER his fault and MORE proof he has no idea what he is doing except screwing over American companies.
Tax cuts let Harley Davidson buy back almost 700 million dollars in stocks. Shareholders are ecstatic. I guess Harley is just another one of those greedy corporations ?
“Buybacks are the corporate equivalent of steroids,” writes economist Robert Reich . “They make shareholders feel better than they would otherwise, but nothing really changes. Money spent on buybacks isn’t reinvested in new equipment, research or factories. Buybacks don’t add jobs or raise wages. They don’t increase productivity. They don’t grow the American economy.” or help the business achieve future sustainability.
Thus my Question: "I guess Harley is just another one of those greedy corporations ?"
I think there are two different things in play. A) Trump said the tax cuts would improve the economy and raise wages, allow companies to re-invest in themselves.....this clearly is not the case as everyone pointed out when they were trying to pass the cuts. B) I would not say because a corporation chooses to buy back stock instead of re-investing it into making their company bigger/better constitutes as greed nor can i say it is a good business choice for them as i do not know what their future goals and objectives are.
Taking the 700 million and giving it as bonuses to the top of the chain and pissing on the rest of their employees would constitute a greedy Corp IMO though.
Yep and they are free to do so, nothing illegal about it but now they get to reap what they've sown on more than one level.
IMO this is the final nail in HD's coffin in the US. And unless Euro's and others are wiling to pay their exorbitant prices like a Americans were, which i doubt, they will ultimately lose there as well.
They have made a serious miscalculation attaching this to the tariffs when they didn't need to. They've been losing the US market for years. This just assures they've lost it completely.
As they said …….. before they didn't.
" Never Forget " !
It's sad when an icon like HD goes down like this but they did it to themselves.
The "bikers" who applaud this move are mainly one's who wouldn't buy a motorcycle anyway.
Stupid move by HD but not unprecedented.
Trumpers didn't see it coming, they deny it's even happening, and they are going to get a lot more of this. The biggest hardware manufacturer of nails who was a Trump supporter is now so disgusted he is lobbying a Democrat Senator to get help so he doesn't go bankrupt.
I am going to take a wild guess here, but this was a decision made long ago by Harley .. now they have found something to blame it on .. they took their tax cuts, bought back stock and closed a plant … think about that for a moment...
Moving manufacturing to Thailand because the current President withdrew from TPP? .. there are plants in India, Australia, Brazil and Thailand .. the American made iconic piece of history and Americana already sold out a few years ago - quit acting like this is all about Trump - Harley can further its bottom line by going over seas and people are blind enough to think that it is still the same old Harley -
I boycotted them several years ago!!!
They're waaaaaay over priced too.
Bought a "used" Softail in '10 - cost was $16,500. Looked at a new one recently - cost is $21,000. Hell, you can buy a new Ford Focus for less than that - get better gas milage, less mechanic time, interior comfort control - and no bugs in your teeth.
They are/have priced themselves out of the "Everyday Man's" budget.
That's for sure. Ya can't beat A/C and Heat for less, especially when in traffic.
Right, buying a new one is out of the question for most.
There are some online sites for second hand ones.
See now, I shouldn't be thinking about this.
Yup - thinking 'bout following Gary's and Kavika's decisions - we've got an Indian dealership in El Paso - might need to make a trip.
I suspect they know they have a lock on the Peter Fonda / Easy Rider wannabe market. That's a lot of retired Boomers with pretty good retirements.
The problem for them is that Boomers aren't the future...
Careful, that often leads to a purchase.
That's what my wife's afraid of.
Gonna use my "War Pony" as a buy-in - should get a pretty good deal.
Yeah, that looks like a good trade in.
Unfortunately for Harley, they have done little to lure new and first time riders with some of their latest styling and configurations.
Some countries, like Australia, have limits one the size and power of bikes for new riders. Harley has a bike series available for this class but does not offer it here. That is something they might want to think about.
Harley did great when they brought themselves back a while ago-they appealed to the we are 'everyone'. Doctors, Lawyers, etc. and made it stylish. Thye seem to have forgotten the 'humble' part. Their prices are crazy, though the Indian's are pretty pricey too, but at least it's an alternative to the every day ride out there.
Agree. A lot of folks were proud of Harley getting out from under AMF and starting down a path to success.
Purchasing a new one is a big investment in itself. Throw in the matching helmet and riding wear for those wanting the latest style, and price out the door, gets worse.
Used bikes become a more viable option.
It doesn’t help that the majority of the riders look like they are seventy pounds overweight and out of shape compared to the riders of the European brand bikes. The image isn’t that appealing now that there are so many standards, adventure and scrambler bikes to choose from.
O.M.G. I agree with Dean.
See how motorcycles can bring people together?
There is a lot of truth in what you stated there. America in general has gotten larger, and a lot of this is reflected and visible at times like riding in a pack of bikes.
There are a lot of clubs that often like to present as pseudo "gang members" out there.
When I was young, I would say British bikes (mostly Triumph and BSA) were the primary east coast gang member bike of choice. Many folks today would not do well on those bikes.
I discovered I was wrong about an earlier statement I made about the HD product line. The 500cc V twin which serves as the entry level Harley in Australia is now available here. It was detuned on purpose to reduce power and also has significantly better fuel mileage ratings than it's bigger siblings.
Looking at case I would think adapting the engine to a Motard chassis should be easy enough, which would open up another market.
It is a shame the Buel wasn't marketed properly. It's handling was highly rated by many of the top tier Super Bike road testers. They let that market get away.
As an American icon, I hope they survive while also maintaining their identity.
You guessed wrong dear.
'I boycotted them several years ago!!!'
I'm sure that really hurt!
Link ?
'Link ?'
Sausage?
I prefer patties.
Mexican Quinoa Patties ?
"The Milwaukee-based company said Monday it came to its decision because of retaliatory tariffs it faces in an escalating trade dispute between the U.S. and the European Union."
"For the rest of this year, the company said, the tariffs will add $30 million to $45 million to its expenses. Rather than pass on those costs to consumers in higher prices, Harley said it would absorb them for now while it begins planning to move production offshore. The full-year tariff bill could reach $100 million, the company said.
"Increasing international production to alleviate the EU tariff burden is not the company's preference, but represents the only sustainable option to make its motorcycles available to customers in the EU and maintain a viable business in Europe," the company said."
Funny….Not what they said before !
Somebody there now have a hardon against Trump ?
Author: Candy Woodall, York Daily Record
Published: 8:59 AM EDT May 26, 2018
Updated: 7:08 AM EDT May 28, 2018
Harley’s U.S. sales have been sinking in recent years as Boomers decide they are becoming too old to continue riding and fewer younger people step up to take their place. As a result, Harley said it was forced to cut excess factory capacity.
Unfortunately there is nothing that could have been done to address the pressure of excess capacity we have in the U.S. market,” Harley said in a statement.
The company maintains that the dividend increase and stock buyback are unrelated to the tax savings.
In May 2017, Harley-Davidson had announced it was adding 118 workers at its Kansas City plant to consolidate Softail cruiser motorcycles and laying off the same number of workers at its Springettsbury Township facility near York, Pa.
Days after it announced the plant closure, the company announced the dividend increase that would reward shareholders and cost the company about $846,000.
The stock buyback plan, which has the effect of boosting share prices, was another expense of $696 million at the time, both to benefit shareholders. That came on the heels of the company's corporate tax cut from 35% to 21% percent and its previous announcement last year that a new motorcycle assembly plant in Thailand would open later this year.
Just a Greedy Corporation changing it's original statements to make a "Nice Nice" to placate the nutz ?
I did, it sounds like crap trump has done all his life. Now he's pissed someone else thought of it.
Oops, it would appear that another incident of not thinking things through has taken place. But of course this has nothing to do with Mr. Trumps economic policies (oozing with sarcasm)
Update from Autoblog :
It's Harley's fault....
I hope Mr. Trump stays the course. People think they had it bad.....they haven't see anything yet. :0p
Bullshit.
HD was planning on shutting that plant down long before any talk of Tariffs. Their market share in the US has been dropping for years as well and going up in other parts of the world. So loss of market share in the US is not a new trend and certainly not related to any new Tariffs.
They just crapped in their mess kit on this one though. They will likely lose way more bidness in the US than they will gain overseas.
Get ready for some nice deals on Harleys. They'll be a shitload of them for sale shortly here in the US. Take it to the bank ....ask for a loan ....
Indian ...... winning!
Jobs moving away from America has been going on for decades, so this is merely a continuation. My experience with it, and resentment about it, had to do with the most comfortable shoes I had ever worn in my life - Rockport Walkers. The company was based in Massachusetts and the shoes they produced there were so good, and lasted so long, that I had worn them about 75% of the time (because of my profession I did wear more formal shoes to work). I am still wearing a pair almost every day that I bought at least 16 or 17 years ago, if not before. However, about 13 years ago because I wanted the same shoes in a different colour I bought a pair that I believe were made in Mexico (and now they are made in many Asian countries as well as some in Mexico) as they were no longer being made in America - Adidas owns them now. However, they are NOT as comfortable and I hardly ever wear that new pair - only if I'm not going to do a lot of walking.
Yep but that doesn't support the left wing narrative many here are pushing so lets not have talk like that.
I wondered what happened to those. I loved then as well and the last couple pairs were just not as good. I stop buying them. They were a nice cross between passing as dress shoes and comfort.
I don't think the difference is so much where the shoes are made as whet standards are upheld by the manufacturer. My at least 15 year old Rockports ($200) are also far superior to the almost identical looking new pair I bought at a warehouse store ($80) but they are not of the same quality. You get what you pay for. My ancient Rockports cost a fortune back when when I bought them full price from a mainline department store. Since then Rockport sold and started manufacturing overseas they became much cheaper and more ubiquitous. Shoes are one of those things that have gotten cheaper as product from Asia became widely available but the adage remains true that you get what you pay for. Back in the 70s and 80s I regularly paid $200 or more for a good pair of dress work shes which would work out to about a thousand bucks today. Our first color TV (RCA 27 inch 1969) cost $1,200 and was manufactured in the USA. That would probably work out to over ten grand today. A twenty seven inch flat screen can be had for a hundred bucks today. Shoes and TVs have gotten cheaper. Only the TVs are actually better today though I would not know where to find a thoousand dollar pair of shoes today...
I bet you remember when men shined their shoes all the time and even got them half-soled and re-heeled. We did that because they cost a lot and were worth repairing and caring for. Now shoes are so cheap we throw them away...
This isn't so simple.
Over those 15 years, the price has fallen to a small fraction (including inflation) of the price you paid. It's not surprising that standards fell along with the price.
And the question is, who caused this parallel fall? The manufacturer or the customer... who doesn't want to pay two hundred bucks for a pair of shoes...
And is today's quality / price ratio better or worse than at years ago?
I certainly do. I've had new quarter-heels put on my old comfortable Rockport Walkers because the back part of the heel wore down. Now the soles are very flat, lost most of their tread. My wife wants me to put new soles on them, but I think that if I did the flexibility will be screwed, so I just have to be more careful on slopes and wet pavement.
Trump has already started to screw the Harley corporation-- looks like now he's trying to get General Motors to move American jobs overseas as well!
General Motors Says Trump’s Tariffs Could Threaten US Jobs