Harley-Davidson may face credit downgrade because of European Union tariffs

Harley-Davidson may face credit downgrade because of European Union tariffs

"In this administration, our allegiance will be to the American workers and to American businesses, like Harley-Davidson, that were very strong in the 1980s and I remember this - you were victims of trading abuse - big trading abuse, where they were dumping all sorts of competitors all over the place", Trump said.

Harley-Davidson should stay 100% in America, with the people that got you your success.

Those tariffs came as a result of Trump's decision to impose steep duties on steel and aluminum imports Europe and elsewhere last month.

Harley-Davidson said Monday it was moving production of motorcycles sold in Europe from US factories to facilities overseas because of retaliatory tariffs it faces in an escalating trade dispute between involving Trump's administration and the European Union. Harley must know that they won't be able to sell back into US without paying a big tax!

Harley-Davidson's chief executive officer Matthew Levatich called President Trump "a moron".

The tweetstorm comes one day after the president said he was "Surprised that Harley-Davidson, of all companies, would be the first to wave the white flag". That was an empty threat - all motorcycles Harley sells in the United States come from American factories, and the company won't import into the market. "Other companies are coming back where they belong!"

The Milwaukee-based company said on Monday it will move production of motorcycles shipped to the European Union from the United States to its worldwide facilities and forecast that the trading bloc's tariffs - introduced as a counter to Trump's tariffs on some EU-produced metals - would cost the company $90 million to $100 million a year. "Their employees and customers are already very angry at them", Trump said on Twitter, without providing any evidence. If they move, watch it, it will be the beginning of the end.

Harley-Davidson announced the closing of a factory in Missouri in January, but the reason for that was slumping domestic sales numbers. "Hence, they were just using Tariffs/Trade War as an excuse", he said. "Harley must know that they won't be able to sell back into US without paying a big tax!" According to Bloomberg, Harley's US sales have dropped every quarter since Q1 2015.

The iconic motorcycle brand is the latest U.S. corporation to run afoul of the U.S. president, who has attacked Amazon as a tax dodger and scamming the U.S. Postal Service.

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