Harley Davidson Responds to Trump's Tariffs

01:05 05/25/2019

President Trump's trade war has shaken up many companies and several executives have recently been chiming in. Harley Davidson's HOG  Chief Executive has aslo been making comments.

Harley CEO Matt Levatich responded about Trump's trade war and said that 'Obviously we can’t sit by and wait for something to happen.'

According to Levatich, EU tariffs are costing Harley Davidson about $100 million a year. The EU had put duties on $2.4 billion worth of U.S. products after President Trump levied tariffs on steel and aluminum imports from Europe in 2018.

“Europe is the big issue for the company, about a $100 million a year run rate that we are covering in order to protect our business in Europe, protect our market share, protect our volume, protect the viability of our distribution channel,” Levatich said on CNBC’s “Squawk Alley,' this week.

It was in June of last year that Harley said it was moving production of its European products out of the U.S. because of the retaliatory tariffs. The company only moved production of EU motorcycles to its plant in Thailand, so U.S. jobs weren’t impacted but some Harley owners had planned to boycott.
Levatich said he believes Harley successfully worked to mitigate concern among its customers after Trump approved the boycott, but Trump's comments “certainly didn’t help.”

“No company wants comments like that made,” Levatich said of Trump’s tweet last August.

Trump tweeted, 'Many @harleydavidson owners plan to boycott the company if manufacturing moves overseas. Great! 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.'

Levatich also announced that the company is expecting to roll out new products “that play very well into strong and growing segments internationally, in particular in Europe.”

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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