The American president, Donald Trump, threatened this Tuesday with commercial reprisals to European Union (EU) after the motorcycle manufacturer Harley Davidson Inform yourself that your benefit fell by 27% in the first quarter of the year. This fall in profits from Harley Davidson also came after Trump attacked the manufacturer several times over the past year and even backed up on Twitter the boycott in the United States of its products for opening factories abroad.
The EU raised tariffs from 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.
"Harley Davidson has struggled with Tariffs with the EU, currently paying 31%. They've had to move overseas to try and offset some of that Tariff that they've been hit with which will rise to 66% in June of 2021. & rdquor; @MariaBartiromo So unfair to U.S. We will Reciprocate!
– Donald J. Trump (@realDonaldTrump) April 23, 2019
The company partly blamed the reduction of its benefit 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, Trump last year asked American consumers to boycott Harley Davidson and threatened higher taxes on the company after the manufacturer announced it would move part of its production from Kansas City (Kansas, USA) to Thailand.
In June 2018, Trump called Harley Davidson's decision to produce motorcycles destined for Europe to avoid tariffs outside the United States an "excuse." "Surprised that Harley-Davidson, of all the companies, was the first to wave the white flag," Trump said on June 25.
Analysts said then that Trump's social media messages undermined the company's sales in the United States. The financial firm BMO explained 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. over time".