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Trump’s steel tariffs may send another American motorcycle company overseas

Just days after Harley-Davidson made a similar move.

A Harley-Davidson motorbike parked in front of the Reichstag building which houses Germany's Bundestag lower house of parliament. - President Donald Trump on June 26, 2018 renewed his attacks on Harley-Davidson, accusing the US motorcycle manufacturer of using the trade war as an "excuse" to move production for the European market out of the United States. (Photo by John MACDOUGALL / AFP)        (Photo credit should read JOHN MACDOUGALL/AFP/Getty Images)
A Harley-Davidson motorbike parked in front of the Reichstag building which houses Germany's Bundestag lower house of parliament. - President Donald Trump on June 26, 2018 renewed his attacks on Harley-Davidson, accusing the US motorcycle manufacturer of using the trade war as an "excuse" to move production for the European market out of the United States. (Photo by John MACDOUGALL / AFP) (Photo credit should read JOHN MACDOUGALL/AFP/Getty Images)

Minnesota-based motorcycle company Polaris Industries has announced that, like its larger rival Harley-Davidson, it is considering moving some production overseas, as a result of Europe’s retaliatory tariffs.

“Nothing is definitive,” Polaris spokeswoman Jess Rogers told the Associated Press on Friday. “We’re looking at a range of mitigation plans.”

She added: “We’re definitely seeing an increase in costs,” but failed to say by how much.

The company currrently employs around 650 people at its Iowa plant.

News that Polaris could send production from Iowa to Poland comes just days after Harley-Davidson acknowledged that production of their bikes sold in Europe has become too costly due to the retaliatory tariffs, and said they will be relocating some American production overseas.

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Harley-Davidson has stated that the EU tariffs on exported motorcycles from the U.S. rose from 6 percent to 31 percent, making each bike about $2,200 more expensive to export.

The company estimates costs related to the tariffs to come out to about $30 million to $45 million for the rest of 2018 and about $90 million to $100 million annually. The European market accounts for roughly 16 percent of Harley’s sales.

In the past, Trump has thanked Harley-Davidson executives for “building things in America.”

“In this administration, our allegiance will be to the American workers and to American businesses, like Harley-Davidson, that were very strong in the 1980s and I remember this — you were victims of trading abuse — big trading abuse, where they were dumping all sorts of competitors all over the place,” Trump said to Harley-Davidson executives in February of 2017.

Ironically, Trump’s actions are directly harming the company he once praised. As recently as May, Harley-Davidson has been forced to move some U.S.-based manufacturing jobs overseas to India and Thailand.

Even more ironic is how Trump has attacked Harley Davidson in recent days for relocating due to his own actions.

“A Harley-Davidson should never be built in another country – never!” Trump tweeted last week. “Their employees and customers are already very angry at them. If they move, watch, it will be the beginning of the end – they surrendered, they quit! The Aura will be gone and they will be taxed like never before!”