(Bloomberg) -- President Donald Trump accused Harley-Davidson Inc (NYSE:HOG). of surrendering in his budding trade war with the EU after the company said it would relocate production outside the U.S. in response to European retaliatory tariffs.
“Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag,” Trump said in a tweet shortly after departing the White House on the presidential helicopter. “I fought hard for them and ultimately they will not pay tariffs selling into the E.U., which has hurt us badly on trade, down $151 Billion. Taxes just a Harley excuse - be patient!”
The company said in an SEC filing on Monday that tariffs enacted by the EU in response to Trump’s penalties on imported steel and aluminum would add as much as $100 million a year to its costs.
“To address the substantial cost of this tariff burden long-term, Harley-Davidson will be implementing a plan to shift production of motorcycles for EU destinations from the U.S. to its international facilities to avoid the tariff burden,” the company said.
White House press secretary Sarah Huckabee Sanders downplayed the announcement earlier Monday, saying Trump’s “trade and economic policies have been a huge benefit to the American economy.”
“The European Union is attempting to punish U.S. workers with unfair and discriminatory trade policies, and President Trump will continue to push for free, fair and reciprocal trade in hopes that the E.U. will join is in that,” Sanders told reporters at the White House.