WASHINGTON – President Donald Trump threatened commercial reprisals against the European Union (EU) after motorcycle maker Harley Davidson said his profits fell 27% in the first quarter.
The fall in profits for Harley Davidson also came after Trump repeatedly attacked the manufacturer last year and even backed on Twitter the US boycott of its products to open factories abroad.
The EU raised tariffs by 6 to 31% on motorcycles that Harley Davidson exports to Europe in retaliation for tariffs that the US administration began to apply last year to imports of aluminum and steel from the EU.
Europe is the second market in revenue for Harley Davidson after the United States.
“So unfair to the United States, we are going to reciprocate!” Trump announced on Twitter today after Harley Davidson announced the fall of its profits in the first three months of the year.
The company partly blamed the reduction of its benefits on tariffs imposed by the EU, but the company also faces a drop in sales in the US market.
“Harley Davidson have suffered with EU tariffs, currently pay 31%, they have had to move their production abroad to try to compensate part of those tariffs imposed on them that will increase to 66% in June 2021,” he added. Trump on Twitter.
Paradoxically, last year Trump asked American consumers to boycott Harley Davidson and threatened higher taxes on the company after the manufacturer announced that it would move part of its production from Kansas City (Kansas) to Thailand.
Trump called in June 2018 as an “excuse” Harley Davidson’s decision to produce motorcycles destined for Europe outside the United States to avoid tariffs.
“Surprised that Harley-Davidson, of all the companies, was the first to wave the white flag,” Trump said on June 25.
“I fought hard for them and, ultimately, they will not pay the EU tariffs, which has hurt us a lot in the trade, up to 151,000 million dollars, taxes are just an excuse for Harley. , he added.
A day later, Trump returned to the charge against Harley Davidson.
“Harley must know that he will not be able to sell again in the United States without paying a big tax!” Trump exclaimed on Twitter.
Finally in August, Trump said on Twitter: “Many owners of Harley Davidson plan to boycott the company if they take the manufacturing abroad … Perfect! Many other companies are coming, including Harley’s competitors, a really bad decision!”.
Analysts said then that Trump’s social media messages undermined the company’s sales in the United States.
The BMO financial firm noted in a note to its investors that “although President Trump’s assessment of his tweets of Harley’s shares was often inaccurate, the damage has been done.” Dealers are feeling the impact and the impact has been greater. with time. “(EFEUSA)