Harley faces tariff heat

Washington: President Trump lashed out at one of his favourite American manufacturers on Tuesday, criticising Harley-Davidson over its plans to move some of its motorcycle production abroad and threatening it with steep punitive taxes.

In a series of tweets on Tuesday, the President accused the Wisconsin-based company of surrendering in Trump's trade war with Europe and said the firm would lose its "aura" if it produced bikes overseas.

"If they move, watch, it will be the beginning of the end - they surrendered, they quit!" he wrote. "The Aura will be gone!"

The attack came a day after Harley-Davidson announced that it would move some of its production abroad in response to stiff retaliatory tariffs that the EU imposed in response to Trump's trade measures.

Rather than raise prices to cover the new 31 per cent tariff on bikes it exports to the EU, Harley said it would shift some of its production to overseas facilities to avoid the tariffs.

Europe targeted Harley-Davidson, an iconic American brand, after Trump imposed tariffs on foreign steel and aluminum. On Tuesday, Trump accused Harley of using the trade dispute as an excuse to send offshore more jobs following the recent construction of a plant in Thailand.