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Harley-Davidson Will Move Some Production Out Of US After Retaliatory Tariffs

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WEB Notes: Another article points out how a steel mill was re-opened in the US, so we are going to get a little back and forth here. However, instead of playing tariff games our government could just reduce their spending, cut the corporate tax rate (US has third highest rate in the world) and watch loads of corporations come back to the USA bringing their wealth and jobs with them. Only in a perfect world.

The company is shifting some production of motorcycles for European customers out of the United States to avoid EU retaliatory tariffs.

Harley-Davidson’s move is some of the most direct evidence yet that tit-for-tat trade fights between the United States and other countries have consequences for American companies. Harley-Davidson said it stood to lose as much as $100 million a year.

“Increasing international production to alleviate the EU tariff burden is not the company’s preference, but represents the only sustainable option,” it said in a regulatory filing on Monday. Harley-Davidson’s (HOG) stock tumbled 6%.

Source: CNN

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  1. Harley Davidson has greedily overexpanded themselves to the point of ridiculous! They used to be U.S.A. made in everything! Because of it all they massively increased their mfg. In HD clothing apparel from third world countries to offset earnings grief! And in doing so, charge astronomical prices! Their bikes cost as much as some cars! 30+ thousand dollars for a motorcycle! And their competition like Honda, Victory, Indian and more, sell nice bikes for considerably less! There is much more to Harley Davidson’s whining than they care to expose! It’s ALL in their tarnished name!

    I love HD! Have one myself from years past. But they have outdone themselves over the decades that is displeasing to the iron horse veteran! 😏

    • They may have done some thing you don’t care for, but a US corporate tax rate of 38% is insane. Can I blame Harely and other businesses for moving jobs out of the nation over that? Nope.

      The US does it to themselves and some of us know there is a lot to that. Not sure if you have or ever operated your own business, but when you break your back just to give it all away. That just is not right.

      Moral of the story here is don’t blame the company, blame the government for the high tax rate in companies.

      • Well they still had pretty good earnings @ the tax rates of previous years!
        Income Tax Rate
        For 2017, Harley-Davidson’s effective tax rate was 39.6 percent compared to 32.4 percent in the prior year. The increased tax rate was largely due to the impact of the write-down of deferred tax assets related to the 2017 Tax Cuts and Jobs Act.

        The Company expects its 2018 full-year effective tax rate to be approximately 23.5 to 25.0 percent, down considerably behind the expected BENEFIT of the new tax legislation. That’s 11 to 16% better due to the new Trump Tax Cuts.

        I have much more sympathy for small businesses than I do most huge loop- hole corporations like Amazon etc.

        Anyway you look at it. Government, or Big Corporations:

        “Power tends to corrupt; absolute power corrupts absolutely”. An observation that a person’s sense of morality lessens as his or her power increases. The statement was made by Lord Acton, a British historian of the late nineteenth and early twentieth centuries. 😉

        • Agree with you about big corporations.

          By the way, “effective tax rate” only means after all of their exemptions, it brought their rate down to that number. They were still taxed at the US corporate rate. You will note this on your own taxes as well.

    • I agree, I have 2 Harley-Davidson. Was proud they were Amerlcan made. They have plants in India and Thailand and closed a Kentucky plant laying off hundreds. Talking with dealers and mechanics and was told this move was planned before tariffs. They have been overpriced for years, have a terrible warranty and charge for everything. Parts are very expensive and to get the dealer to do the work, they charge about $100 per hour per part even if it doesn’t take an hour. And the corporate tax rate was lowered to 21% in January.

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