Trump warns Harley-Davidson of 'big tax' for shifting some production abroad

[highplainsdem]

Source: The Hill

President Trump accused Harley-Davidson on Tuesday of using the European Union's retaliatory tariffs on its motorcycles as an "excuse" for shifting some of its production abroad, and warned that the company would not be able to sell its bikes back to the U.S. without "paying a big tax."

"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," Trump tweeted. "Hence, they were just using Tariffs/Trade War as an excuse. Shows how unbalanced & unfair trade is, but we will fix it."

"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!"

"When I had Harley-Davidson officials over to the White House, I chided them about tariffs in other countries, like India, being too high. 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!"

-snip-

Read more: http://thehill.com/homenews/administration/394105-trump-warns-harley-davidson-of-big-tax-for-shifting-some-production

---

Editing to add another Trump tweet attacking the company, this one posted less than ten minutes ago:

Link to tweet

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!

[tanyev]

1. I can't recall any previous presidents who thought attacking American companies was a winning move.

[Dave Starsky]

13. That's why Trump is such a fucking genius.

No other President was smart enough to know how great a tactic it is.

In the same way that no one else figured out that you can STOP AGING by drinking a gallon of rat poison. No one was ever smart enough to try it!

[forgotmylogin]

48. I predict Connie's meddling with the devoted biker community will go just great!

I mean...stirring a running blender with your dick doesn't always end in catastrophe!

[Dave Starsky]

56. I've never tried THAT before...

But it sounds like a GREAT idea!

[mahatmakanejeeves]

15. Roosevelt 26 v. Standard Oil

U.S. President Theodore Roosevelt depicted as the infant Hercules grappling with Standard Oil in a 1906 Puck magazine cartoon

Source: Standard Oil

[cstanleytech]

41. Well difference is Standard Oil was a huge company that had a monopoly where as Harley is just one

of many motorcycle companies.

[scarytomcat]

46. if you don't count Japanese bikes, which are a totally different kind of bike)

Harley are in a class all by themselves with a loyal buyer. One other small maker that I know of but I have not paid much attention in many many years. But I too wish they would continue making them in US.

[cstanleytech]

49. Agreed but in a truly free market companies like Harley can and will relocate somewhere else

in order to increase their profit margin and in this case that means relocating outside the US to make bikes for sale in the EU in order to avoid tariffs brought on because of Trumps stupidity.

[scarytomcat]

62. I agree that it is smart to manufacture

where you sell
car companies have been doing that for awhile
but to build overseas, as so many companies are doing and then ship them to US is a big loss of jobs here

[IronLionZion]

19. Trump is no ordinary president

he's several magnitudes more brilliant than you or I could even begin to understand.

[Cosmocat]

34. FREE MARKET!

The loons who have screamed that my entire life are ...

crickets.

Can you imagine if a D POTUS even in a tertiary manner said something negative about a business?

[Blue_Tires]

50. Because previous presidents would have been dragged

out of the white house by an angry mob and beaten into a coma for doing this shit...

But Trump does it and faces no repercussions whatsoever....

[beachbum bob]

2. no example that trumps tariff tax has lessen what he perceives as trade barriers, any where

in fact, more barriers are going up

[RKP5637]

4. The guy has no F'en idea what he's doing. He's trying to run the country like a slum lord. n/t

[beachbum bob]

7. most slum lords understand numbers, trump doesn't care..the agenda is being run by those who are

stuck in the mindset that america is first and foremost...a 1950's thought process in the same flawed manner that neo-cons were expressing in bringing "democracy to the Mideast" We all know how that turned out and what trump and his circle will be the same outcome, except it puts america into a tailspin that we may not be able to pull out of in time

[RKP5637]

16. Sadly quite true! n/t

[lark]

22. They are worse than that.

They (the people at the top of the drumpf admin. and especially drumpf himsef) are enthralled to Putin and to destroying liberal democracies in Europe for Russia's benefit and some like Miller and Sessions seem to think they can drive all minorities out of the country. Their ultimate goal is a total change from liberal democracy to serfs/barons model and the oligarchs are the new barons. They want to accomplish this by;
Stealing Social Security, & Medicare $ from working class and giving it to rich
Ending Medicaid and any and all other healthcare efforts from government
Throwing seniors out of nursing homes so children are hurt taking care of them or they just die on the streets, either way is oK w/them
Ending public education entirely so only rich get educated
Ending all labor laws including child labor laws and overtime and force us to work for pennies for their profits
Only wealthy get to vote

That is their ultimate goal and what theyve been working to achieve for decades and are nearer now than ever, the traitors to America's ideals.

[RKP5637]

3. mr. tRump won't be satisfied until he creates a recession or Great Depression. The ass takes America

down another notch each day.

[moose65]

5. I don't know about y'all, but...

those tweets don't sound like Trump at all. Has he ever used the word "chided" before?? Someone else wrote those.

[Autumn]

8. I noticed that, also they don't ooze vitrol and hate, almost rational

in a creepy way.

[lark]

24. So, Miller wrote those tweets, obviously.

Oozing racial animus, rather than incoherent ranting, is totally Miller style.

[Autumn]

33. I think so. It wasn't Trump for sure.

[yallerdawg]

10. Why would he "chide" Harley officials over India's tariffs?

This incomprehensible word-salad sounds familiar.

Meanwhile, I'm still googling "Tallahassee Trail."

[PatSeg]

31. Yes, you're right

A little too coherent for Trump.

[no_hypocrisy]

6. So if you're H/D, then damned if you do and damned if you don't.

Stay here and go out of business with the tariffs and dwindling sales (make that diminished, disastrous sales).

Go abroad and Trump will tax you.

You're fucked either way.

[louis c]

9. On Nov. 9 I said this to anyone who'd listen...

...the only silver lining in the Trump victory is that the most people who will get fucked the hardest (economically speaking) will be the Trump supporters.

It certainly is playing out that way.

[SWBTATTReg]

55. Yes, you're right...if you've noticed, especially w/ the Chinese tariffs threating US exports ...

Last edited Tue Jun 26, 2018, 12:54 PM - Edit history (1)

to China, China was clever enough to target their tariffs directly against those products specifically made in rump states. Clever...they are directing their retaliatory tariffs (against the US tariffs) directly at the group of people who supported rump the most! I read this somewhere and I was amused and of course impressed that they thought of this (targeting rump states).

I hope that the other countries do the same, e.g., India, Europe, etc., after all, it's tit for tat...and rump should have left everything alone. If there were truly any issues, he could have addressed in a more civil manner than via the idiotic manner he's doing.

rump, and only rump will be to blame for the latest recession that will hit the US, less demand for American products overseas leads to less demand for dollars, which means dollar-dominated products such as OPEC oil is more expensive, and results in a never ending cycle.

Despite what rump says, the world is now one economy, not just one economy, it's all intertwined. Rump is showing a very poor understanding of how economies interact/work together, and basically is driving the whole economic cycle based upon misinformation and misconceptions.

In another six months, the pain and job losses, the shuttered factories, and so forth, is going to be hard to ignore and IT'S ALL ON RUMP. No one else.

He's already blaming H. Davidson itself (not him) for not absorbing the losses until it reaches a point it's out of business. H. Davidson is simply making a business decision before it can no longer make such a decision (it'll be bankrupt). Wonder how many more companies are on their way to such a demise, all solely based on rump economics?

If China got specific in targeting those rump states, the other countries will do the same, I feel.

[Yellowdog88]

11. On a limb here

I don't think that HD ever indicated shifting overseas to SELL back to the US consumer. They are a pretty proud company that would get killed for that.

They have however seen that the American market is pretty limited (competition, cost, and long-lasting quality bikes). It makes sense to expand into foreign markets where they could build AND sell.

This guy is an idiot who has no instinct other than what happened in the last 24 hrs or what will happen in the next 6 hours.

Just another example of someone who is seriously underqualified to manage business much less a branch of the federal government. Thanks republican party and your low info strategy!

[dembotoz]

23. hd us market is getting old....maket is mature in too many ways. export or die

guess perhaps die.....

oh by the way.....welcome to du

[BumRushDaShow]

36. You know what though?

There are many cities like mine (Philly), that are explicitly making/setting aside special parking spaces to accommodate motorcycles and electric scooters/bikes. What HD might want to consider is "downsizing" some of their models to try to pick up some of the ecologically conscious millennials who were born and raised in the suburbs, but who are moving in droves to cities (including the downtowns) like mine, as young adults. Many don't have or want a car (or need one 24/7), so many are using those "Zip car" things as needed but could consider motor bikes.

[yonder]

57. I'm not positive, but I think HD has/had a plan to introduce an electric model.

Next couple of years maybe. Kind of a shocker

[BumRushDaShow]

58. Ironic but

the motorcycle was always considered the "economical" way for motorized travel due to the mpg it gets compared to a car. So like everything else, they probably need to adapt to the times. This could provide some innovation opportunities to get "more power" in an electric bike to rival what is available in their gasoline models. Of course "electric" is also "silent" so they would need to consider how to "rev it up" for those who like monster engine sounds.

[yonder]

59. yeah whhirrw, whhirrw doesn't have the same effect as the lope of a long-stroke single or twin.

I've been riding/racing motorcycles for a hair over 50 years. Still have one in the garage, but try not to ride on the street anymore. A few too many close calls with "cagers" (now made much worse with faces in their phones) and my own slowing reflexes have got me running scared.

However, this electric bike thing has made me sit up and pay attention. There are a few electric motorcycles but tons of electric bikes, most of them expensive. Right now I'm looking at an electric mountain bike that might do double duty as a go-to-store, quick trip, greenbelt thing.

Economical wave of the future, I hope.

[BumRushDaShow]

29. No, you are not out on a limb

I believe that is what they are doing. They already have plants overseas/international for sales overseas (i.e., "local" markets). They are not going to screw themselves by making there to sell back here.

Their prospectus indicates this -

Grow International Business to 50% of Annual Volume

We have a tremendous opportunity in developed and emerging markets internationally, where the strength of the H-D brand is just as strong as it is within the U.S. We’re growing our reach and brand awareness in these markets as we build the next generation of riders globally.

https://www.harley-davidson.com/us/en/about-us/company.html

AND right now, their overseas plants are not yet in Europe (they are in Asia, Australia, and South America) -

MANUFACTURING

USA, Missouri, Kansas City – Vehicle and Powertrain Operations. Tour information >

USA, Pennsylvania, York – Vehicle Operations. Tour information >

USA, Wisconsin, Menomonee Falls – Powertrain Operations. Tour information >

USA, Wisconsin, Tomahawk – Tomahawk Operations

Australia, Adelaide – New Castalloy

Brazil, Manaus –Harley-Davidson do Brasil Ltda Assembly Plant

India, Bawal – Harley-Davidson India Bawal Assembly Plant

Thailand, Rayong – Thailand Sales Office and Assembly Plant

https://www.harley-davidson.com/us/en/about-us/careers/locations.html

They may have some stiff competition with both the Italian and German motorcycle industry but I suppose they are banking on their iconic "brand" picking up some customers within the EU (although the current occupant of the WH is trashing that "brand" along with the U.S. "brand" in general ).

And by the way - welcome to DU!

[Freethinker65]

37. Yep

[bucolic_frolic]

12. I'm hunkered down and not buying anything

I don't really need. So Trump's threats aren't going to make me spend.

The end result of all these tariffs and threats will be jobs moving overseas, higher prices for US consumers, and a lowered standard of living because things are costing us more and we are importing less. Many, many things are only made overseas, we can't compete on wages even if we build factories here. Several products I use were made in the US, then disappeared for a few years, and are now back again - made in China. Once the factory has been sold and the means of production moved, it's expensive to start anew here in Trump USA.

[watoos]

17. It was all fun and games for Trump

when he first put tariffs on steel and aluminum. Some steel factories reopened creating good jobs. The big problem for Trump is that the U.S. doesn't have nearly the amount of raw steel factories it used to have, there are a limited number of jobs that Trump can save. Sadly for Trump, there are a heck of a lot of jobs in the U.S. that import steel and aluminum and we are starting to see those effects, those jobs losses happen. The nail factory in Missouri that imports steel from Mexico to make nails has had to lay off workers and may have to shut down resulting in 500 lost jobs. All of the experts that I have read about predict that Trump's steel and aluminum tariffs are going to cost the U.S. thousands of jobs, and that's just looking at steel and aluminum.

Not to mention the stock market is finally starting to react to Trump's trade wars. It didn't believe he would go there, now they are starting to believe.

[KY_EnviroGuy]

26. No fun and games for the markets....

Link: https://www.marketwatch.com/story/dow-industrials-set-to-take-a-breather-after-their-300-point-tumble-2018-06-26?link=MW_popular

Dow industrials set to slide further after 300-point tumble
By Victor Reklaitis
Published: June 26, 2018 7:17 a.m. ET
(snip)

What are strategists saying?

“Trump’s agenda of protectionist measures is threatening U.S. and global growth. Economists from around the world are expressing their concerns that a global trade war could send the U.S. back to a recession, and investors are taking a defensive approach as a response,” said Konstantinos Anthis, head of research at ADS Securities, in a note.

Trump himself is not doing this and he does not write the agenda....he is just a showman and puppet.....

[KY_EnviroGuy]

18. Why is everyone reading this fool's Tweets?

This is not the way presidents should communicate. It's been very evident from the beginning he does not write these messages anyway. I believe there's a cadre of minions in the dark bowels of our White House led by Miller and with a fiber optic connection to Heritage Foundation that cranks these out.

If tRump wants to be heard and support American business, he should issue statements on stationary and help our paper industry.

I would like to see our MSM in full revolt and disregard all statements by government officials on social media. Force them to return to proper decorum and process.

.....

[Cosmocat]

38. Democrats should be running on getting this asshole off of twitter

hell, if a D POTUS had a well followed twitter account with nothing but positive affirmations, the Rs would have used congress/the courts to shut it down a year and a half ago.

the FIRST thing that could be done to try to reel this country back from fascism is getting this asshole off Twitter.

[sinkingfeeling]

20. Which countries have reduced or eliminated tariffs or trade barriers, Don?

[Cosmocat]

39. As many as NK has reeled in its nuclear program

nm

[greatauntoftriplets]

42. Funny that he hasn't bragged about it ad nauseum.

[duforsure]

21. He's threatening businesses

Bow down , or Do as I say or else, and also coming from a guy who produces most of his products overseas too. Businesses should be wary of trump because its all about shaking them down by abusing his powers as the president. Others will soon follow Harley knowing this is what putin did too. He's doing this to demand loyalty and protection payments to exist in business.

[Ohiogal]

25. How does attacking

a struggling American company "Make America Great Again"? (scratching head)

[Soxfan58]

27. So much for

Free enterprise!

[Thomas Hurt]

28. Be careful he says or I will trim that yuuuge tax cut I gave by a point.........LOL.

[Renew Deal]

30. He sounds like Maduro.

How long till he takes over the factories for “National Security”?

[Renew Deal]

32. What other countries did he get to reduce and eliminate tariffs and trade barriers?

[GulfCoast66]

35. I am always surprised at the number of HDs I see in Europe

Makes sense that the company would need to avoid a 31% take on bikes imported from the US.

[Liberalhammer]

40. Harley owners

Are one of Trumps supporter demographic old to middle aged white males.

Time for them to feel the pain

[Gothmog]

43. Kiss Nov. elections goodbye: Wall Street Journal rips into Trump for driving Harley jobs to Europe

Link to tweet

[truthisfreedom]

44. How can a sitting president threaten an American business who is not

breaking any laws? First he makes the business environment impossible for them, now he’s promising to financially hurt them if they try to survive?

[marble falls]

45. He's kicking the snot out of the people who support him. When are they going to get it?

[deurbano]

47. Better warn Ivanka about that, too! Does she actually produce any of her tacky products here?

[The Velveteen Ocelot]

51. Trump is an idiot (but we knew that already).

HD is moving some production to the EU so it can sell motorcycles to EU customers without getting hit with the tariff, not to re-import them for sale in the US.

He really hasn't a clue about how any of this works, does he?

[keithbvadu2]

52. How about a tax on Trump family products made overseas and sold here?

How about a tax on Trump family products made overseas and sold here?

[C_U_L8R]

53. Big tax... on who????

Trumpstain would be taxing Harley owners.
That's just stupid.

[jmowreader]

54. How the Democrats can win farm states and the Rust Belt

Campaign on ending Trump's trade war.

You realize what could be an entertaining piece of television history? Sit Trump down for an interview. Ask him if he believes any manufacturer producing product overseas should be tariffed. (He does. He's said it repeatedly.) When he says yes, pull out a grocery bag full of Trump Collection and Ivanka Trump products and read the country of origin labels.

[riversedge]

60. WI is losing also on soybeans, cranberries. and cheez

https://www.washingtonpost.com/news/business/wp/2018/06/26/trump-threatens-harley-davidson-with-taxes-like-never-before-and-eventual-collapse/?utm_term=.d8dcd633e365




Trump threatens Harley-Davidson with taxes ‘like never before’ and predicts its eventual collapse
by Damian Paletta June 26 at 8:40 AM Email the author
.........................................................

President Trump on Tuesday threatened the iconic motorcycle company Harley-Davidson with severe taxes and predicted a public revolt that he said would eventually put the 115-year-old firm out of business, blasting the Wisconsin company for a plan to move some operations outside the United States as a way to avoid getting caught in the middle of an escalating trade war.

Trump also accused Harley-Davidson, without providing any evidence, of intentionally misleading Americans by saying the firm was moving some operations out of the United States in response to new tariffs imposed by the European Union.

The intensity of these attacks, which he typically reserves for political opponents, came in Twitter posts.

He alleged that Harley-Davison’s Monday announcement that it would move some more operations outside the United States was long planned and that it was using Europe’s new tariffs as an excuse. He threatened to hit the company with an unspecified tax if it attempted to sell motorcycles in the United States that were made outside the country.

Harley-Davidson had long planned to open a new plant in Thailand, a decision that predated the trade war between Trump and the leaders of a number of other countries. But the firm said Monday that it was shifting more production overseas specifically to blunt the impact of the tariffs imposed by Europe.

These E.U. tariffs on specific U.S. products were imposed in retaliation against Trump’s tariffs on steel and aluminum imports from the E.U.
....................................................

[SeattleVet]

61. When is he planning on moving production of his suits, ties, and other crap back to the US?

<crickets>