In response to tariffs imposed by the European Union, Harley-Davidson says it will move production of motorcycles made for markets overseas out of the United States. Wisconsin is the home of Harley Davidson.
The EU's tariffs primarily affect products made in Republican-majority states and could threaten Trump's party in the November midterm elections, reports the Independent.
Meanwhile, Trump is threatening to slap 20% tariffs on US auto imports from Germany and the rest of Europe, which would dramatically escalate the conflict.
That will make each bike about $2,200 more expensive to export, Harley said.
"In the near-term, the company will bear the significant impact resulting from these tariffs, and it estimates the incremental cost for the remainder of 2018 to be approximately $30 to $45m", it continued.
Harley-Davidson Inc. plans to shift some manufacturing of the iconic motorcycles overseas to avoid retaliatory European tariffs imposed last week, the company said Monday.
"Harley-Davidson maintains a strong commitment to USA -based manufacturing which is valued by riders globally", the company's filing said.
The company, which sold almost 40,000 motorcycles in Europe previous year, said it planned to absorb those costs rather than pass them on to customers and risk damaging sales.
Harley-Davidson has been relying on Europe and other global markets to help offset declining sales in the USA, where the baby boomers who have long bought the vehicles are aging and younger consumers are not taking to the motorcycles in a big way.More news: Governor, Finance chair don't support internet sales tax
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Mr Trump responded to the situation via Twitter, writing that he was "surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag".
The president's comments follow the company's announcement that new duties mean each motorcycle heading into Europe will cost an increased cost of $2,200.
The US President was so upset with the American firm he chose to dedicate a whole Twitter rant to it.
"Trump ran on jobs and making America great again, but he is making a decision that may help big steel, but it hurts downstream businesses like ours who employ a heck of a lot more people than steel does". It said shifting its production outside the United States would take nine to 18 months.
United Steelworkers, a labor union representing some of the motorcycle maker's U.S. employees, said Monday that Harley-Davidson had long since begun to shift its manufacturing operations overseas.
"We are extremely anxious about the consequences of a trade war and are urging the White House to not advance with this plan", Ryan's spokeswoman, AshLee Strong has previously revealed. The company didn't note how US workers would be affected but plans to detail financial implications as well as ways to mitigate the impact of retaliatory European Union tariffs during the company's second-quarter earnings conference call on July 24.
The company claimed the EU's action increased the tariffs on its motorcycles from six percent to 31 percent.