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story.lead_photo.caption Harley-Davidson has been assembling some motorcycles outside the U.S. for more than 20 years, but the motorcycles it builds here it sells here.

WASHINGTON -- President Donald Trump on Tuesday further chastised Harley-Davidson over its decision to move some operations overseas, describing the company as slumping and saying he is helping some of its foreign competitors move to the United States.

Trump, in a Twitter post, said Harley-Davidson's sales were down 7 percent last year, and that "Harley customers are not happy with their move."

But Harley-Davidson recently made the announcement that it would be moving some operations overseas in response to high tariffs the European Union is imposing on the motorcycles. It could not be learned why Trump was linking the company's sales figures last year to a decision it made in the middle of 2018. The EU decision was put in place as a way of retaliating against steel and aluminum tariffs Trump imposed on member countries.

Trump has threatened Harley-Davidson with high taxes and predicted its eventual collapse if it followed through on the decision. But the company has not wavered on its announcement, even though its stock price has suffered. It marked the first major U.S. company to move jobs outside the U.S. in response to the current trade war between Trump and a number of other countries.

Trump did not identify the foreign motorcycle companies he is actively helping to move to the United States. But several of the largest motorcycle companies are based in countries with which Trump is currently feuding.

These include Yamaha, Honda, and Kawasaki, which are all based in Japan. Japanese officials were furious when Trump refused to exempt them from the steel and aluminum tariffs.

The only major U.S. motorcycle manufacturer other than Harley is Polaris Industries Inc., and a spokesman for the company told the Associated Press last week that it might move some Indian-brand motorcycle output to Poland, from Iowa, in order to avoid European Union tariffs.

Ducati, another large motorcycle company, is based in Italy. BMW makes motorcycles, and they are based in Germany, which is one of the countries Trump complains about the most when it comes to trade policy.

BMW and Honda already have large U.S. automotive operations, however, and it's possible he could be trying to entice those companies to bring some motorcycle production here.

Last week, Trump attacked Harley-Davidson in a way that he typically reserves for political opponents. At one point, he cautioned the company not to "get cute with us," regarding the company's executives. But the firm did not change its plans. It has not said where precisely it will move some of its U.S. operations to avoid the European tariffs, only that they would be based somewhere outside the country. The company already has assembly plants in Australia, Brazil, India and Thailand.

Trump's supporters like how he fights for U.S. jobs, and Trump has said that many of the company's customers and workers agree with his position.

But his anger directed at the company is a sharp reversal from the glowing terms he used to describe it last year. In February 2017, when Harley-Davidson executives visited the White House, Trump heaped praise on the Wisconsin-based firm.

"So thank you, Harley-Davidson, for building things in America," he said. "And I think you're going to even expand -- I know your business is now doing very well and there's a lot of spirit right now in the country that you weren't having so much in the last number of months that you have right now. You see what's happening."

Harley-Davidson has been assembling some motorcycles outside the United States for more than 20 years, but it builds the motorcycles it sells in the United States inside the United States.

The company announced in January that its worldwide retail motorcycle sales had fallen 6.7 percent in 2017, compared with 2016. U.S. retail sales had fallen 8.5 percent, and sales overseas were down 3.9 percent.

Harley-Davidson did not immediately respond to a request for comment.

Information for this article was contributed by Sarah Gardner of Bloomberg News.

Business on 07/04/2018

Print Headline: Trump re-scolds Harley-Davidson

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Comments

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  • TimberTopper
    July 4, 2018 at 6:13 a.m.

    Harley needs to tell Trump where to go! The bully started all this mess.

  • RBear
    July 4, 2018 at 7:20 a.m.

    H-D is just making a wise business decision as will many other businesses in the wake of Trump's misguided tariffs. Trump rebuking them and looking at other manufacturers to fill their void is really government picking winners and losers. Isn't that what many of the right wingers in here call socialism? Maybe MAGA is really socialism in disguise.

  • WGT
    July 4, 2018 at 7:50 a.m.

    Sick. Trump’s lack of logic is a disease permeating through his bluster and infecting his base.

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