After the European Union has declared to implement tariffs on certain US items like bourbon, orange juice, and motorcycle, Harley-Davidson has decided to shift a slice of their production to a different base. According to the company, this will keep the production uninterrupted while not affecting the prices of the bikes. However, Donald Trump has expressed that the decision to shift the production base to a different location is not wise. To be precise, he has attacked the plan of the company. He also mentioned that the company already had plans to shift their base to the latest plant in Thailand. The tariffs and duties are the excuses presented by the company to mobilize the shifting process.
In response to the allegation brought against the company, it has revealed that the plan to initiate a new plant was designed when the President of the US withdrew the trade deal in the name of Trans-Pacific Partnership or the TPP. Since the cancellation of the deal would have resulted in the depleted tariffs in Asia, the decision was taken.
Donald Trump took the platform of Twitter to express his emotions towards the company. He stated that the not only the customers, the employees are also highly dissatisfied with the company due to the present decision as it clearly indicates surrendering. Trump has also threatened that he will implement high taxes on the products if it continues with the plan to shift the production to a different base.
He will also not allow the company to sell the bikes from Thailand to the US without paying a huge tax. Trump also mentioned that the company has bluntly raised a white flag while he has fought very hard for it.
Though Harley-Davidson has 4 factories in the US, it will face severe scenarios if the production base is shifted to Thailand.