Harley-Davidson has filed a stock market communication indicating that it would need to shift some production overseas in order to address the issue of the new tariffs that are being levied on the American icon’s products in the European Union in response to the levies on steel and aluminium exported to the United States.
In response to the filing, president Donald Trump tweeted that he was surprised that the company would be the first to wave the white flag.
The move is seen as the first major business reaction to president Trump’s protectionist policy of targeting imports in order to protect American jobs. Ironically, the move could potentially result in some jobs moving to an overseas location targeting the European market.
However, the company has not indicated the size of its potential investment or location, other than saying that the European tariffs were adding around $2,200 to each motorcycle sold in Europe and could lead to a long term cost of upto $100 million. The company is currently absorbing the extra cost.