By Abid Ali, business reporter
"A Harley-Davidson should never be built in another country - never!" President Donald Trump has said, as he accused the firm of using a trade dispute with the European Union as cover to move production overseas.
In his latest Twitter rant targeting the iconic maker of motorcycles, Mr Trump warned: "If they move, watch, it will be the beginning of the end - they surrendered, they quit! The Aura will be gone and they will be taxed like never before!"
A Harley-Davidson should never be built in another country-never! Their employees and customers are already very angry at them. If they move, watch, it will be the beginning of the end - they surrendered, they quit! The Aura will be gone and they will be taxed like never before!
— Donald J. Trump (@realDonaldTrump) June 26, 2018
Just an hour before, he wrote: "Early this year Harley-Davidson said they would move much of their plant operations in Kansas City to Thailand. That was long before Tariffs were announced. Hence, they were just using Tariffs/Trade War as an excuse."
Early this year Harley-Davidson said they would move much of their plant operations in Kansas City to Thailand. That was long before Tariffs were announced. Hence, they were just using Tariffs/Trade War as an excuse. Shows how unbalanced & unfair trade is, but we will fix it.....
— Donald J. Trump (@realDonaldTrump) June 26, 2018
He also said he had "chided" Harley-Davidson about tariffs in India and many companies were returning to the United States.
"... Companies are now coming back to America. Harley must know that they won't be able to sell back into U.S. without paying a big tax!"
....We are getting other countries to reduce and eliminate tariffs and trade barriers that have been unfairly used for years against our farmers, workers and companies. We are opening up closed markets and expanding our footprint. They must play fair or they will pay tariffs!
— Donald J. Trump (@realDonaldTrump) June 26, 2018
Milwaukee-based Harley-Davidson said it had decided to build the plant in Thailand after Mr Trump pulled out of the Trans-Pacific Partnership, which would have slashed import tariffs.
Mr Trump's tweet barrage comes after the company said it would shift some production of bikes heading for customers in the European Union to its international production plants.
It follows Brussels' decision to retaliate against Mr Trump's tariffs.
The EU imposed tariffs on a range of US-made products, including cosmetics, whiskey and cranberry juice, after Mr Trump imposed extra taxes on EU steel and aluminium.
The levy on Harley-Davidson bikes has increased to 31% from 6%, the company said.
In another tweet aimed at Brussels, Mr Trump warned the EU the US was close to concluding a study on tariffs on car imports. He has suggested slapping a 25% levy on EU car imports.
"....We are finishing our study of Tariffs on cars from the EU in that they have long taken advantage of the US in the form of Trade Barriers and Tariffs. In the end it will all even out - and it won't take very long!
....We are finishing our study of Tariffs on cars from the E.U. in that they have long taken advantage of the U.S. in the form of Trade Barriers and Tariffs. In the end it will all even out - and it won’t take very long!
— Donald J. Trump (@realDonaldTrump) June 26, 2018
On Monday, Mr Trump said the iconic maker of motorcycles had waved the "White Flag" after he had fought hard for the company.
Mr Trump tweeted: "I fought hard hard for them and ultimately they will not pay tariffs selling to the EU, which has hurt us badly on trade, down $151 Billion. Taxes just an excuse - be patient!"
Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag. I fought hard for them and ultimately they will not pay tariffs selling into the E.U., which has hurt us badly on trade, down $151 Billion. Taxes just a Harley excuse - be patient! #MAGA
— Donald J. Trump (@realDonaldTrump) June 25, 2018
In a regulatory filing, Harley-Davidson said: "To address the substantial cost of this tariff burden long-term, Harley-Davidson will be implementing a plan to shift production of motorcycles for EU destinations from the US to its international facilities to avoid the tariff burden.
"Harley-Davidson expects ramping-up production in international plants will require incremental investment and could take at least nine to 18 months to be fully complete."
"It believes that works out to be about $2,200 (£1,650) per bike it exports from the US to the EU.
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"In the near-term, the company will bear the significant impact resulting from these tariffs, and it estimates the incremental cost for the remainder of 2018 to be approximately $30 to $45m," it continued.
"On a full-year basis, the company estimates the aggregate annual impact due to the EU tariffs to be approximately $90 to $100m."
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