Milwaukee-based motorcycle manufacturer Harley-Davidson announced Monday that it will move the production of its European Union-bound motorcycles to sites overseas as a direct result of President Trump's escalating trade war, the Financial Times reports. Harley-Davidson said that European Union tariffs, which were imposed in retaliation to Trump's tariffs on imported steel and aluminum, would increase the average cost of a motorcycle to the EU from the U.S. by around $2,200, Marketwatch reports.
"Harley-Davidson believes the tremendous cost increase, if passed onto its dealers and retail customers, would have an immediate and lasting detrimental impact to its business in the region, reducing customer access to Harley-Davidson products and negatively impacting the sustainability of its dealers' businesses," the company said, adding that it plans to "shift production of motorcycles for EU destinations from the U.S. to its international facilities to avoid the tariff burden."
The company's decision is a blow to Trump's goal of "America first" economic policies. The manufacturing jobs will reportedly be moved to plants in India, Brazil, and Thailand, Harley-Davidson said.