Harley Davidson to move production out of US because of EU tariffs.

 

Harley-Davidson, the American motorcycle manufacturer, said on Monday that it was shifting some of the production of its bikes outside the United States to avoid European Union tariffs imposed as part of a widening trade dispute.

The announcement, made in a public filing, is an early sign of the financial cost to companies on both sides of the Atlantic as the United States and Europe impose tariffs and counter-tariffs on each other.

The list included bourbon from Kentucky, the home state of the Senate majority leader, Mitch McConnell; as well as orange juice, which is made largely in the swing state of Florida; and motorcycles made by Harley-Davidson, headquartered in Wisconsin, the home state of the House speaker, Paul D. Ryan.Harley-Davidson said on Monday that European Union tariffs on its motorcycles had increased to 31 percent, from 6 percent.

It estimated that the higher tariffs would add about $2,200 on average to every motorcycle exported from the United States to the bloc, so it said it would move the production of bikes bound for Europe outside the United States.

It said shifting its production outside the United States would take nine to 18 months.

It did not say how jobs in the United States would be affected.