Tariffs are taxes that raise the cost of goods for consumers. Trump may be using such tariffs as a means to lower tariffs over all. He did suggest the idea that tariffs on many European goods be completely eliminated at the G7. But if he is it’s a dangerous strategy.
It should be noted that last week the big German car manufacturers came out and said they were for getting rid of all tariffs. They wouldn’t have said this if it were not for Trump’s disposition. So it is possible that there’s something to what Trump is doing. However, raising taxes is never good. We are taxed enough already in this country and Trump should know this.
Harley-Davidson, the iconic American motorcycle brand, will shift some manufacturing overseas in response to the raising of trade barriers on both sides of the Atlantic.
In a filing made Monday with the Securities and Exchange Commission, Wisconsin-based Harley-Davidson disclosed plans to move some of its manufacturing facilities from the Rust Belt to the Old World in the hopes of avoiding higher costs created by new European Union tariffs that target American-made motorcycles, along with other cultural products like whiskey and blue jeans. Those 25 percent tariffs were imposed last week by E.U. officials in response to the Trump administration’s decision to place tariffs on steel and aluminum imported from Europe.
The tariffs will increase the cost of a motorcycle exported from the U.S. to the E.U. by about $2,200 per bike, and would cost Harley-Davidson between $90 and $100 million per year, the company told the SEC.