US President Donald Trump has threatened Harley-Davidson with higher taxes and says the famous motorcycle-maker will suffer a public backlash if it goes ahead with a plan to move production for European customers overseas.

Mr Trump’s latest attack on a US corporation is a sharp reverse for the President. Early in his administration, he hailed Harley-Davidson as a model of American manufacturing and posed with some of its bikes in front of the White House.

“A Harley-Davidson should never be built in another country-never! Their employees and customers are already very angry at them,” Mr Trump said on Twitter early on Tuesday.

“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!” Mr Trump said.

A Harley-Davidson should never be built in another country-never! 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!

— Donald J. Trump (@realDonaldTrump) June 26, 2018

It was unclear what taxes Mr Trump was referring to and why the company might have to pay them since it intends to maintain production in the US for American customers. The White House did not return a request for comment on Mr Trump’s tweet.

The Milwaukee-based company said on Monday it will move production of motorcycles shipped to the European Union from the US to its international facilities. It also forecast that the trading bloc’s tariffs – introduced as a counter to Mr Trump’s tariffs on EU-produced metals – would cost the company $US90 million ($122 million) to $US100 million a year.

In a series of angry Twitter posts on Tuesday, Mr Trump suggested the famous American brand was using tensions about tariffs as an excuse to move production.

“Early this year Harley-Davidson said they would move much of their plant operations in Kansas City to Thailand. That was long before Tariffs were announced. Hence, they were just using Tariffs/Trade War as an excuse,” Mr Trump said on Twitter.

Early this year Harley-Davidson said they would move much of their plant operations in Kansas City to Thailand. That was long before Tariffs were announced. Hence, they were just using Tariffs/Trade War as an excuse. Shows how unbalanced & unfair trade is, but we will fix it…..

— Donald J. Trump (@realDonaldTrump) June 26, 2018

In January, Harley-Davidson said it would close a plant in Kansas City, Missouri, over a sharp drop in US demand for its motorcycles. It said it would consolidate work done there into its plant in York, Pennsylvania.

The company is setting up an assembly plant in Thailand, a move it announced in May 2017. That will put together bikes for the growing South-East Asian market.

The Thailand plant had no connection with the closure of the Kansas City facility, Harley-Davidson chief executive Matt Levatich told Reuters in February.

-AAP