Harley-Davidson should never be built in another country: Trump

US President Donald Trump has challenged Harley-Davidson’s move to shift some of its production to overseas facilities after EU’s tit-for-tat measures against US duties on steel and aluminium imports raised duties on US-made motorcycles from 6% to 31 percent. Harley-Davidson should never be built in another country, he wrote on Twitter, and threatened to level new taxes on their products. The EU’s more than $3 billion worth retaliatory tariffs on US goods include motorcycles. For Harley-Davidson, Europe is the biggest market outside the US and it accounts for 16% of its sales. After EU’s countermeasures, the incremental cost of exporting a motorcycle from the US to the EU is expected to touch $2,200. Hence it makes business sense for Harley to avoid the tariff burden by shifting some of its production to overseas units. Trump had hailed Harley for building things in America. EU Trade Commissioner Cecilia Malmstrom told a news briefing on Tuesday that Harley-Davidson’s decision to shift some production was a natural consequence of a protectionist US trade policy.