The company announced the plan as it works to avoid EU tariffs
Donald Trump has expressed surprise that Harley-Davidson is moving production of EU-bound motorbikes out of the United States.
The US President accused the company of 'waving the white flag' amid a trade dispute between the US and EU.
Harley Davidson motorbikes were among dozens of US goods - also including the likes of Levi jeans, bourbon whiskey and orange juice - hit with 25% import tax from the EU last week.
The European duties were in retaliation to the Trump administration's decision to impose tariffs on aluminum and steel imports.
Harley-Davidson says European customers would be paying almost €1,900 more on its bikes if it did nothing.
In an official filing, the company said: "Harley-Davidson believes 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, reducing customer access to Harley-Davidson products and negatively impacting the sustainability of its dealers’ businesses.
"Harley-Davidson will be implementing a plan to shift production of motorcycles for EU destinations from the US to its international facilities to avoid the tariff burden."
However, Donald Trump has tweeted urging the company to 'be patient' - claiming that taxes are 'just a Harley excuse'.
Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag. I fought hard for them and ultimately they will not pay tariffs selling into the E.U., which has hurt us badly on trade, down $151 Billion. Taxes just a Harley excuse - be patient! #MAGA— Donald J. Trump (@realDonaldTrump) June 25, 2018