Harley Davidson to move out of U.S productions- Blames the E.U Tariffs

Harley Davidson which is known as the American icon and employer is tending to move its productions out of United States due to the heavy E.U tariffs. The U.S president Donald Trump has a defending trade policy that points out towards the Harley Davidson motorcycle company which would end up offering it benefits.

Yet the company is of a mind to get caught in the brawl. On Monday the Wisconsin based company announced that it would shift a major part of its productions of motorcycles in order to save from payback tariffs imposed by the European Union in response to the trade measures of the U.S President. The company further added that the “move is not the company’s preference, but represents the only sustainable option to make its motorcycles accessible to customers in the E.U. and maintain a viable business in Europe.”

The market experienced a downshift with the cease in U.S. productions leading to the slowing down of the United States and a vital market increase of Europe. “Harley-Davidson believes the tremendous cost increase if passed on to its dealers and retail customers, would have an immediate and lasting detrimental impact to its business in the region, reducing customer access to Harley-Davidson products and negatively impacting the sustainability of its dealers’ businesses,” – said the company in a public filing.

Like all other automobile manufacturers, Harley Davidson has also reckoned on international markets for sales and has gradually shifted its production outside of the United States. At present spare parts of the motorcycle company are manufactured in India, Brazil, Thailand, and Australia. The countries do not levy many tariffs and therefore the cost of production is low.

A senior member of the Peterson Institute for International Economics said that other companies may also follow the Harley Davidson way for producing at the minimal cost. “This is incredibly self-defeating,” – said the economist.

by Sawan Kumar on June 26, 2018

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