Harley-Davidson, a Milwaukee, Wisconsin based company has stated that retaliatory EU tariffs as a result of the initial tariffs imposed by the Trump administration mean that the company will have to shift some production outside of the United States.
The prices of the vehicles have increased by over $2,000 USD as a result of EU import tariffs. To allow the production to be economically viable, the regulatory filings from the company stated that they aim to shift final production on some vehicles overseas to reduce tariff burdens on their company.
The announcement comes just a year after the company laid off nearly 200 employees at their Milwaukee, Wisconsin and Kansas City, Missouri manufacturing plants. The company has stated that they are able to absorb the increase costs, but only for a short time without increasing prices for consumers.
President Trump has further floated the idea of a 20-percent tariff on European car imports, making some Republican lawmakers nervous. The political considerations for intra party disagreements are noted, with the general midterm elections slated for this November. However, there are some including the retiring U.S. Senator from Arizona, Jeff Flake who are considering stopping federal judicial nominee hearings if Congress does not consider legislative action to reduce the unilateral ability for the President to install tariffs.