Harley-Davidson to move production out of US as tariffs bite

US motorcycle manufacturer Harley-Davidson has announced plans to move production of motorcycles destined for sale in Europe to a factory outside the US.

The proposed move is “a consequence of the retaliatory tariffs the EU is imposing on American exports in an escalating trade war with the Trump administration”, says the Associated Press.

Donald Trump said he was surprised that Harley-Davidson was the “first to wave the white flag” and urged other manufacturers affected by the tariffs to “be patient”.

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The raising of tariffs on US-built motorcycles from 6% to 31% will effectively add “an incremental cost of $2,200 per unit exported from the US to the EU”, CNBC reports.

Harley-Davidson says the additional costs would add up to at least $90m (£68m), or about 15% of the company’s annual profits.