Harleys can’t reverse, but Trump can.
Well, the factory version can’t, but you can buy an after-market reverse gear kit.
Last year Donald Trump slammed Harley Davidson for threatening to move production overseas, in response to his Tariffs.
But after Harley reported a 26% drop in adjusted income yesterday, he tweeted:
“Harley Davidson has struggled with Tariffs with the EU, currently paying 31%. They’ve had to move production overseas to try and offset some of that Tariff that they’ve been hit with which will rise to 66% in June of 2021.”
Harley is simply the latest casualty of the Tariff war started by Trump, and is following Tesla and BMW and other big names that have moved or are moving some manufacturing overseas to circumvent tariffs.
Harley appears to be waiting to hear from the EU whether exporting motorcycles to the region from its Thailand plant means it can sidestep the 31% levy, which is scheduled to jump to 56 percent in 2021.
Their other option would be to assemble bikes in Europe.
If and when this is all over, the real effects of the 301 (steel and aluminium) Tariffs of 2018 will make a fascinating case study.