However, Harley-Davidson has warned consistently against tariffs, saying they would hurt sales. The immediate solution will be to shift part of its production from the U.S. to overseas markets; it now has manufacturing units in India, Thailand, Brazil, and Australia.
It said it would raise investment in its worldwide plants, though it did not say which ones.
US President Donald Trump on Tuesday renewed his attacks on Harley-Davidson, accusing the motorcycle manufacturer of using the trade war as an "excuse" to move production for the European market out of the United States.
Harley-Davidson said it expected the ramp-up in production to take nine to 18 months. But Trump says that's an excuse.
Capra said no bikes manufactured overseas would be sent to the USA for sale.
For example, British-owned GFG Alliance, has said it plans to invest $5bn over several years to reopen a shuttered steel plant in SC.
For motorcycles the European Union is raising its 6 percent tariff to 31 percent, making each bike around $2,200 more expensive to export. Trump opined. "Their employees and customers are already very angry at them".
It said the cost for the remainder of 2018 would amount to $30m to $45m. She was asked for President Donald Trump's reaction to Harley-Davidson announcing it would shift the production of motorcycles headed for Europe from the U.S.to factories overseas. "But that is a demographic of the country that he relates to, guys who ride Harleys", said Barry Bennett, a former Trump campaign adviser, said of the president.
Mary Lovely, a senior fellow at the Peterson Institute for International Economics, and Yang Liang, a graduate associate at the Moynihan Institute of Global Affairs, highlighted the possibility that companies will abandon the United States in a recent policy paper.
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"I don't like that because I've been very good to Harley-Davidson".
"Wisconsin needs a governor who says Donald Trump is a risky idiot on every issue from immigration to trade policy", said Madison Mayor Paul Soglin. The EU targeted the United States vehicles as part of its rebuttal to Trump's tariffs on imported aluminum and steel.
On Monday, the company tried to smooth troubled waters, saying its shift of production overseas would not dent its "strong commitment to US-based manufacturing" which riders around the world valued.
Aides said Trump tried to communicate a broader message - or threat - with his Tuesday tweets: Companies should grow their businesses in America. "If bikes are made elsewhere, European Union taxes on trade hurt the U.S. economy but do not hurt Harley Davidson profits or the European Union consumer".
"President Trump will continue to push for free, fair and reciprocal trade, in hopes that the European Union will join us", Ms Sanders said.
Harley-Davidson's stock price sank as much as 2.6% after Trump berated the company on Twitter.
Even as American companies feel the heat from Trump's economic aggression, there is no sign that he is backing down. Daimler last week said the tariff escalation will crimp its earnings.