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Tariffs1 Push Harley-Davidson to Produce Overseas
The American company Harley-Davidson will move the production of some motorcycles out of the United States to avoid rising costs from tariffs.
The European Union has ordered tariffs on American imports like bourbon, peanut butter and orange juice. The EU says about $3.4 billion worth of U.S. products are affected2.
The new taxes are meant to answer tariffs the Trump3 administration is requiring on steel and aluminum4 imports from Europe.
Harley-Davidson sold almost 40,000 motorcycles in EU member countries last year. The company says the EU is its second largest market, after the United States.
The maker5 of the well-known motorcycle said on Monday that EU tariffs on its motorcycles jumped between six percent and 31 percent. The company said it expects the tariffs will result in an increased cost of about $2,200 per average motorcycle exported from the U.S. to Europe.
“Increasing international production…is not the company's preference,” the statement said. It added that the decision is the only way to operate a viable6 business in Europe, which Harley-Davidson called a ‘critical market.’
The company said that it will not raise its prices because that would cause an immediate7 and long-lasting effect on sales in Europe. In the near term, Harley-Davidson will instead absorb most of the cost of moving the production of motorcycles overseas. It estimates the cost for the rest of this year to be from $30 million to $45 million.
Harley-Davidson said that moving some production from the U.S. to factories overseas could take at least nine to 18 months to be completed.
On Monday, the vice8 president of the European Union's governing body said that Europe and China will form a group aimed at reforming international trade rules. The group will examine technology policy, government assistance to businesses and other issues in order to guarantee support for international trade.
European Commission Vice President Jyrki Katainen noted9 recent actions by U.S. President Donald Trump in disputes over steel, China's technology policy and other issues. He said they showed the need to modernize10 the World Trade Organization.?
The Wall Street Journal newspaper reports that the Trump administration plans to limit Chinese investment in American technology companies and high-tech11 exports to China.
Words in This Story
tariff–n. a tax on goods coming into or leaving a country
preference– n. something that is liked or wanted more than something else
viable–adj. able to work, survive or develop
absorb–v. to take in
1 tariffs | |
关税制度; 关税( tariff的名词复数 ); 关税表; (旅馆或饭店等的)收费表; 量刑标准 | |
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2 affected | |
adj.不自然的,假装的 | |
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3 trump | |
n.王牌,法宝;v.打出王牌,吹喇叭 | |
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4 aluminum | |
n.(aluminium)铝 | |
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5 maker | |
n.制造者,制造商 | |
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6 viable | |
adj.可行的,切实可行的,能活下去的 | |
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7 immediate | |
adj.立即的;直接的,最接近的;紧靠的 | |
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8 vice | |
n.坏事;恶习;[pl.]台钳,老虎钳;adj.副的 | |
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9 noted | |
adj.著名的,知名的 | |
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10 modernize | |
vt.使现代化,使适应现代的需要 | |
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11 high-tech | |
adj.高科技的 | |
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12 weaver | |
n.织布工;编织者 | |
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