Washington : US President Donald Trump, who had battled for Harley-Davidson’s case against India over its high tariffs on the iconic motorcycles, has criticised the company for its plan to shift some of its production units overseas to avoid retaliatory tariffs by the European Union. Trump said he was surprised by such a decision by the Wisconsin-based motorcycle manufacturer, saying it amounted to raising the “white flag”. Outside the US, Harley-Davidson has manufacturing facilities in India, Brazil and Australia.
Trump has repeatedly raised the issue of high tariffs by India on high-end Harley-Davidson motorcycles, which in part is responsible for the current trade tension between the two countries.
In February, Trump had said that the Indian government’s decision to reduce the tariff on Harley-Davidson motorbikes from 75 per cent to 50 per cent was not enough and asked that it should be reciprocal, as the US imposes “zero tax” on the import of motorcycles.
The EU began imposing tariffs on Friday on $3.2 billion worth of American goods, including motorcycles, orange juice, bourbon, peanut butter, motorboats, cigarettes and denim. They are a response to the Trump administration’s tariffs on steel and aluminium imports from Europe.
Trump says the duties are necessary to protect the US steel and aluminium industries, which are vital to national security. They have drawn retaliation from the EU, Canada, Mexico, India and others while driving up the cost of metals for manufacturers in the US.
