Harley-Davidson, stung by tariffs, shifts some production overseas

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That increase will add on average $2,200 to the cost of each motorcycle sold in the European Union, and would cost the company $90 million to $100 million a year, the filing said.

To prevent further long-term damage to the company's revenues, it said the production of motorcycles for European Union destinations needs to switch from the USA to its worldwide facilities.

Harley-Davidson, stung by new tariffs, said it will shift some motorcycle production to factories outside the U.S.

Harley-Davidson expects ramping-up production in worldwide plants will require investment and will take at least 9 to 18 months to be fully complete.

Tariffs levied by the European Union on motorcycles are set to jump to 31 percent from 6 percent, the company said in the filing.

"Harley-Davidson maintains a strong commitment to US -based manufacturing which is valued by riders globally", the company said in prepared remarks.

Harley-Davidson is to shift production of some of its iconic motorbikes out of its U.S. plants as it falls victim to the trade war between America and Europe.

Harley-Davidson will not raise its prices to avert "an immediate and lasting detrimental impact" on sales in Europe, it said. The response came to President Trump's recent decision to slap tariffs on European imports.

In the short term, Harley says it will absorb the cost of the tariffs, rather than passing it on to customers.

It said the cost for the remainder of 2018 would amount to $30m to $45m. The company said it will take a hit of $30 million to $45 million for the rest of this year.