Iconic American motorcycle maker Harley Davidson will shift some of its supply chain out of the United States to avoid the European Union's retaliatory tariffs, and keep its retail prices level in Europe.

"Increasing international production to alleviate the EU tariff burden is not the company's preference, but represents the only sustainable option," Harley Davidson said in a regulatory filing. 

The EU last week began imposing tariffs on US$3.2 Billion worth of American imports, including such red state staples as cigarettes, orange juice, bourbon, and motorcycles.  This was in retaliation for the orange clown Donald Trump slapping 25 percent tariffs on steel imports and 10 percent tariffs on aluminum.  Harley said the impact of the EU tariffs could work out to roughly $2,200 per motorcycle.

"Europe is a critical market for Harley-Davidson," the company said, "The tremendous cost increase, if passed onto its dealers and retail customers, would have an immediate and lasting detrimental impact to its business in the region."

And so, Harley Davidson motorcycles for the European market will be made at the company's overseas plants.  The company is building a new plant in Thailand.