It seems Harley has become a political football for Trump who once lauded the company as an American icon and exemplary manufacturer.
However, in an unprecedented threat, Trump has now Tweeted: “If they move, watch, it will be the beginning of the end — they surrendered, they quit! The Aura will be gone and they will be taxed like never before!”
He might soon also have to threaten Indian Motorcycle which is now considering moving production to Polaris facilities in Poland to avoid the repercussions of Trump’s trade war with Europe.
Company spokesman Jess Rogers says they are considering “the possibility of moving production of Indian Motorcycles destined for Europe from Iowa to our facility in Poland”.
Parent company Polaris also has manufacturing facilities in Mexico and has been considering an assembly plant for Indian motorcycles in India.
“The growing impact of this trade war is increasing the production costs of our vehicles,” Jess says.
“We continue to examine various options for managing the cost increases from both tariffs and the domestic materials pricing.”
Trade war chronology
The talk of trade wars began early last year when Trump mentioned “unfair tariffs” of 100% against Harley in India.
The fact is, only a few Harleys imported into Indian copped a 75% tariff (now 50%), while partially assembled Harleys and Street models built in India had much lower tariffs.
Then Trump slapped a 25% tariff on steel and aluminium, which placed cost pressures on Harley and others who Trump was trying to protect.