Harley-Davidson will move some production out of US after retaliatory tariffs
Posted June 25, 2018 7:40 a.m. EDT
NEW YORK (CNNMoney) — Harley-Davidson is already taking a hit in the trade fight between President Trump and European allies.
The company is shifting some production of motorcycles for European customers out of the United States to avoid EU retaliatory tariffs.
The EU is imposing tariffs on $3.2 billion worth of American goods, including motorcycles, orange juice, bourbon, peanut butter, motorboats, cigarettes and denim. They are a response to the Trump administration's tariffs on steel and aluminum imports from Europe.
For motorcycles, the EU is raising its 6% tariff to 31%. That will make each bike about $2,200 more expensive to export, Harley said. Harley is not raising prices for customers. The company said it will take a hit of $30 million to $45 million for the rest of this year.
Harley-Davidson's stock fell 2% in premarket trading.
This is a developing story.