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Harley-Davidson has described the EU tariffs as a "substantial" burden
Donald Trump has renewed his criticism of the Harley-Davidson bike agency over its plans to shift manufacturing away from the United States with a purpose to keep away from European Union tariffs.
The United States president posted on Twitter that the agency was utilizing commerce battle as an "excuse".
He mentioned it had taken the decision lengthy earlier than the present tariffs.
But Harley-Davidson mentioned it had determined to construct a plant in Thailand after Mr Trump withdrew from the Trans-Pacific Partnership (TPP).
TPP would have lowered tariffs in Asia.
Early this 12 months Harley-Davidson mentioned they might transfer a lot of their plant operations in Kansas City to Thailand. That was lengthy earlier than Tariffs have been introduced. Hence, they have been simply utilizing Tariffs/Trade War as an excuse. Shows how unbalanced & unfair commerce is, however we are going to repair it.....
— Donald J. Trump (@actualDonaldTrump) June 26, 2018
The Twitter row started with Mr Trump expressing shock that the corporate had grow to be "the first to wave the white flag", including: "I fought hard for them."
Harley-Davidson had earlier mentioned making bikes for the European market can be transferred to different international locations.
The EU tariffs are a response to new US duties on metal and aluminium imports.
White House press secretary Sarah Sanders additionally instructed reporters at a briefing on Monday that the EU was "attempting to punish US workers with unfair and discriminatory trade policies".
"President Trump will not stop to push for free, fair and reciprocal trade, in hopes that the EU will join us," Ms Sanders mentioned.
Wisconsin-based Harley-Davidson mentioned the elevated prices from the EU tariffs have been a "substantial" burden and a menace to its worldwide gross sales, which it has been making an attempt to develop.
The firm has meeting crops in Australia, Brazil, India and Thailand in addition to within the United States.
Harley-Davidson mentioned it might elevate funding in its worldwide crops, although it didn't say which of them, including that it anticipated the rise in manufacturing to take 9 to 18 months.
It mentioned the tariffs would add, on common, $2,200 (£1,660) to every bike exported to Europe from the United States because the import tax will increase from 6% to 31%.
The firm, which bought practically 40,000 bikes in Europe final 12 months, mentioned it deliberate to soak up these prices moderately than go them on to prospects and threat damaging gross sales.
Harley-Davidson's transfer is among the most seen penalties of the commerce disputes triggered by President Trump's decision to levy tariffs on metal and aluminium imports.
Mr Trump says the duties are obligatory to guard the United States metal and aluminium industries, that are important to nationwide safety.
They have drawn retaliation from the EU, Canada, Mexico, India and others whereas driving up the price of metals for producers within the United States.
US corporations that vary from boat-builders to nail producers have warned concerning the penalties of escalating commerce tensions.
How hogs and Harleys turned weapons in a looming commerce battle.