Tensions between the Trump administration and Harley-Davidson (NYSE:HOG) have been brewing for months and now the president has tweeted his support for a Harley-Davidson Boycott.
Harley-Davidson Boycott: What’s Going On?
It began when the Trump administration imposed tariffs on steel and aluminum imports earlier in the year. The reason cited was to strengthen domestic manufacturing by encouraging companies to purchase on home soil. But of course, many foreign steel and aluminum suppliers weren’t happy.
A backlash occurred sparking a multi-country trade war, wherein the European Union decided to raise tariffs on certain goods imported from the United States—including Harley-Davidson motorbikes.
The Cost
Of course, foreign demand for the American bikes has grown in the last few years whilst American interest has subsided. So now, because of the tariffs, Harley-Davidson stands to lose as much as $100 million a year on motorcycles sold in the EU.
To avoid such loses, the company wants to move some of its production abroad.
President Trump
Unhappy with this decision, Trump has accused Harley of using the EU tariffs as “an excuse” for moving production out of America. He also claimed the company had made plans to move operations to Thailand before the tariffs were announced.
However, Harley still maintains that the “only sustainable option” for its brand is to move production overseas.
Another goading from the President toward the bike-maker was his surety of “other Motor Cycle companies who want to move into the U.S.” and adding insult to injury, he called it “great” that consumers might boycott Harley-Davidson in light of its potential move overseas.
On Sunday he tweeted the following: “Many @harleydavidson owners plan to boycott the company if manufacturing moves overseas. Great!” Trump wrote. “Most other companies are coming in our direction, including Harley competitors. A really bad move! U.S. will soon have a level playing field, or better.”
Trump made the remark after the ‘Bikers for Trump’ event he hosted at his golf club in New Jersey on the weekend. Hundreds of supporters ascended on the golf-club in support of Trump’s administration. Featured Image: Deposit Photos/stevanovicigor
