EU Tariffs Drive Harley-Davidson To Move Some Bike Production Outside US

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Evie Fordham Politics and Health Care Reporter

Motorcycle manufacturer Harley-Davidson will shift some of its production outside of the U.S. in a move driven by new European Union (EU) tariffs, the company announced in a Securities and Exchange Commission filing on Monday.

The EU heightened tariffs on U.S.-manufactured items from 6 to 31 percent, meaning an increase “of approximately $2,200 per average motorcycle exported from the U.S. to the EU,” according to Harley-Davidson’s filing.

Harley-Davidson sold approximately 40,000 new motorcycles in Europe during 2017, making the region its “most important market” after the U.S., reported The New York Times(RELATED: Trump Threatens Tariffs On European Cars, Stocks Tank)

The tariffs would cost the company up to $45 million for the remainder of 2018, Harley-Davidson said. Moving production of bikes for the European market out of the U.S. will take up to 18 months, reported Bloomberg.

This isn’t Harley-Davidson’s first time facing backlash for moving production outside the U.S. Union workers called the company’s announcement that it would open a Thailand production center “a slap in the face to the American worker” in May 2017.

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