To get around the import duty in European Union, Harley Davidson is planning to shift production to other countries like Thailand, India or Brazil
Harley Davidson the iconic American cruiser manufacturer is going through a tough time. US is the biggest market for Harley Davidson, but things are not going well in its Home market as sales are coming down, so the company decided to focus on overseas market for growth. The American manufacturer is getting good traction in European market with positive growth.
Because of Trump’s trade war, EU increased import duty on motorcycles, jeans and other things from 6 percent to 31 percent which is a huge hike for any manufacturer. This has come at a wrong time for Harley Davidson as they are planning to expand reach in Europe and the company will lose more than $45 million dollar with increased tax.
To get around the import duty, Harley Davidson is planning to shift production to other countries like Thailand, India, Brazil but this move is not welcomed by Donald Trump as he tweeted that the American manufacturer is using trade/tariff war as an excuse to shift production as they were planning to do this from earlier this year.
He tweeted again saying that employers and customers are not happy with the decision of Harley Davidson and if they continue with their move then it will be the beginning of the end of the iconic bike manufacturer. Trump also said that Harley Davidson will not get any tax benefits in US if they shift production which will increase price.
The Trump issue is also creating problem in other countries as India is also planning to increase import duty on American bikes, but most of the volume products from Harley Davidson are currently manufactured or assembled in India but still it will increase price of premium bikes. Indian Motorcycles will be the one which will be hit hard as they import all their products from US and the company was on a rise in the Indian market.