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The chips are starting to fall in the escalating trade war between the Trump administration and other countries. Harley-Davidson announced that they will move the production of motorcycles bound for European countries out of the United States. The reason for the controversial move is the rising costs in production of their motorcycles because of the European Union (EU) tariffs.
The very “American” company made this remark in a filing Monday, stating that the EU tariffs on motorcycles exported from the U.S. rose from 6 percent to 31 percent, according to an Associated Press report. Motorcycles that will ultimately be shipped to European countries will now be produced in overseas factories.
Harley-Davidson Inc. said that it will not raise its prices due to “an immediate and lasting detrimental impact to its business in the region,” according to the AP.
Because of President Trump’s proposed tariffs other countries, the European Union announced earlier this month that would would now impose retaliatory tariffs on a range of U.S. goods in July, including motorcycles.
The measures came specifically in response to Trump’s massive tariffs on imported aluminum and steel from the EU and other key U.S. allies, including Canada and Mexico.
What do you think the backlash will be on companies like Harley-Davidson Inc.? Do you think their move to production in other countries will cause the president to back off on his trade war plans? Will this move become a slippery slope causing other companies to follow suit and move their production to other nations?
If this creates a ripple with companies, it could signal the loss of highly prized American jobs across the nation.
Are you in favor of Trump’s strong stand with these ally nations on tariffs, even thought the cost of many common Americans goods may rise? We look forward to seeing your comments.
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