Trump Admin Works to Bring Motor Companies to the US

US President Donald Trump stated on Tuesday that his administration is working to bring other motorcycle companies to the United States, after Harley-Davidson Inc decided to move some of its production to overseas for European customers.

Trump did not give any further details about the steps that his administration is taking. When asked for a comment about the tweet, White House senior adviser Kellyanne Conway did not have any comment.

“Now that Harley-Davidson is moving part of its operation out of the US, my administration is working with other Motor Cycle companies who want to move into the US,” said the president on Twitter, adding that “The US is where the Action is!”

\Meanwhile, Harley-Davidson declined to comment on the tweet.

Trump has warned that he would impose higher taxes on the Milwaukee-based manufacturer to retaliate after the company said on June 25 that it was shifting some production for European-bound motorcycles from US facilities to avoid the tariffs that will be imposed by the European Union as a response to US duties pushed by Trump.

Motorcycle companies located outside the United States include Japan’s Honda Motor Co Ltd and Yamaha Corp, Europe’s BMW and Ducati, as well as India’s Hero MotoCorp Ltd, Bajaj Auto Ltd, and many others.

The company’s announcements sent quakes to Trump’s relationship with the iconic American brand. Executives have also been feted at the White House during a visit with the president last year a few weeks after Trump took office.

Amid the waning US demand for motorcycles, Harley has shifted its focus on overseas sales. It has opened assembly plants in Thailand, India, and Brazil.

“Harley’s primary issue is US-related due to shifts in demographics, which began well before any talks of tariffs and trade wars. Trump’s reaction seems emotionally charged. Harley is simply playing the hand Trump dealt them,” stated Bernstein analyst David Beckel.

Shares of Harley gained up 1.5 percent at $42.55 on the New York Stock Exchange. The company’s shares took at blow after the president tweeted that the company would be “taxed like never before” after the production announcement, but there were no further details disclosed.

On Tuesday, Trump also apparently incorrectly tie Harley’s announcement to its sales last year. He said that Harley customers were not happy with the move, adding that sales had fallen 7 percent in 2017.

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