Trump threatens to 'reciprocate' EU tariffs after Harley's profits plummet

President Trump vowed on Tuesday to reciprocate against “unfair” European Union tariffs that are hitting Harley-Davidson after the company posted a first-quarter profit that dropped 26.7 percent.

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The U.S. motorcycle company blamed its slumped profits on falling U.S. sales and European import tariffs. However, Harley topped Wall Street’s expectations by more than 30 cents, sending its shares higher.

TickerSecurityLastChangeChange %
HOGHARLEY DAVIDSON37.98+0.31+0.82%

“So unfair to the U.S.,” Trump wrote in a tweet. “We will Reciprocate!”

It marked a turn in opinion for the president, who last year called for a boycott of Harley after the company announced plans to move production of its motorcycles bound for the EU to its overseas facilities in order to dodge an EU tariff (which the bloc had implemented in response to Trump’s tax on steel and aluminum).

At the time, the new duties on motorcycles imported to the EU increased to 31 percent from 5 percent. Harley said the tariffs would add roughly $2,200 to the cost of the average bike built in the U.S. and exported to the EU.

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Trump is set to appear in Wisconsin on Saturday for a campaign rally as he seeks reelection in the 2020 presidential election.