Dow falls amid trade fears as Harley-Davidson announces plan to move production
WASHINGTON -- The Dow fell by more than 300 points on Monday amid growing worries about trade.
Harley-Davidson said it's planning to shift some of its production overseas to avoid tariffs that Europe imposed when President Trump slapped tariffs on European steel and aluminum.
Mr. Trump blamed past U.S. leaders for the simmering conflict over trade. In a tweet, he urged Harley-Davidson to "be patient," saying "ultimately they will not pay tariffs selling into the EU."
Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag. 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! #MAGA
— Donald J. Trump (@realDonaldTrump) June 25, 2018
But the company's shift overseas is a consequence of the Trump administration's tariffs. In response, the European Union applied import duties of 25 percent on a range of products, including Harleys.
In an SEC filing, the company said the tariffs will result in an additional cost of $2,200 per motorcycle exported from the U.S. to the EU.
MidContinent Steel and Wire in Poplar Bluff, Missouri, the largest nail manufacturer in the U.S. just laid off dozens of workers. Operations general manager Chris Pratt says the company lost business from increased steel costs.
"The imposition of these tariffs on our raw materials on June 1 has actually put our operations into a crisis mode," he said.
White House press secretary Sarah Sanders blames the EU for those lost American jobs.
"The European Union is trying to punish U.S. workers because they have engaged repeatedly in unfair trade practices and the president is saying enough is enough," she said.
But many members of the president's own party oppose his trade policy. Gov. Scott Walker of Wisconsin, where Harley-Davidson is headquartered, says the goal should be no tariffs for anyone.