Photo: hdforums.com
The trade war declared by American president Donald Trump on the world, justified or not, is beginning to have unwanted effects.
Started as a means to protect the American companies and consumers from what Trump calls unfair tariffs, the trade war, as it is called by the media, is now open on three fronts: China, the European Union, and Canada.
This week, Trump’s economic battles backfired in a glorious way, reloading the guns of the president’s detractors: one of the most iconic American companies, part of the bunch Trump said he is trying to protect, folded and announced a decision unique in its history.
In response to Trump’s new trade policies, the European Union, as did China, retaliated and imposed increased tariffs on a list of products coming from the U.S. Among them, motorcycles.
Harley-Davidson, a company which is equally as successful in Europe as it is in the U.S, said the increased tariffs for bikes sold in the EU would mean the price for the motorcycles sold there would have to increase by $2,200.
That’s not a good business model, decided the company, which added on Monday that it would be shifting production of motorcycles for EU destinations from the US to its international facilities.
Of course, Trump perceived Harley’s move as borderline betrayal. In a tweet posted on Monday, the president expressed his surprise that Harley of all companies has waved the white flag and accused it of using taxes as an 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!”
Harley did not yet say how many, if any, of its U.S staff would have to go. Separately, Harley is already in the process of closing a plant in Kansas City, Missouri and relocating a plant in York, Pennsylvania, moves that are expected to cost around 1,100 jobs.
This week, Trump’s economic battles backfired in a glorious way, reloading the guns of the president’s detractors: one of the most iconic American companies, part of the bunch Trump said he is trying to protect, folded and announced a decision unique in its history.
In response to Trump’s new trade policies, the European Union, as did China, retaliated and imposed increased tariffs on a list of products coming from the U.S. Among them, motorcycles.
Harley-Davidson, a company which is equally as successful in Europe as it is in the U.S, said the increased tariffs for bikes sold in the EU would mean the price for the motorcycles sold there would have to increase by $2,200.
That’s not a good business model, decided the company, which added on Monday that it would be shifting production of motorcycles for EU destinations from the US to its international facilities.
Of course, Trump perceived Harley’s move as borderline betrayal. In a tweet posted on Monday, the president expressed his surprise that Harley of all companies has waved the white flag and accused it of using taxes as an 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!”
Harley did not yet say how many, if any, of its U.S staff would have to go. Separately, Harley is already in the process of closing a plant in Kansas City, Missouri and relocating a plant in York, Pennsylvania, moves that are expected to cost around 1,100 jobs.
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) 25 iunie 2018
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