Harley Davidson is moving from Donald Trump’s house
Donald Trump will not be able to start a Harley Davidson any time soon if he continues his economic war with China and the European Union. These by chance have joined to face the immense list of tariff penalties imposed by the US president, who stubbornly continues to promote his American First policy without measuring the serious consequences to the US economy, but especially to the large manufacturers and producers. Trump again used Twitter to deny that his trade measures are lacerating the famous Harley-Davidson motorcycle factory. The most emblematic producer of this type of vehicle announced that it will transfer most of its productions out of the country.
As expected, after the US firm of motorcycles made the statement, Trump lashed out via Twitter and said that that was just an excuse to make a headquarters’ move.
According to the US president, his plan is proving to be effective as several countries have reduced or eliminated their tariffs on American products and have even opened their markets. However, this is only part of Trump's speculative scope and daily ramblings, since France and Germany have implemented tariff measures against imports from the United States. Precisely the European Union fixed taxes for motorcycles and American jeans.
Trump replied with a series of Twitts and commented on the possible closure of the Harley Davidson’s plant in Kansas City and the transfer of jobs to Thailand.
The Milwaukee-based company told local media that increasing international production to alleviate the EU's tariff burden is not the company's preferred option, but represents the only sustainable option to make its motorcycles accessible to EU customers of the company and maintain a viable business in Europe.
"That was long before the Tariffs were announced, they used Tariffs/Trade War as an excuse, that shows the unbalanced and unfair world trade is, but we will fix it ...", the White House’s tenant twitted.
To date, the emblematic firm produced motorcycles for the European market in the United States. But due to the high cost of aluminum due to the taxes imposed, plus the import that the EU fixed, it is more profitable to move production abroad. The directors of the company estimate that will take about 18 months to complete.
To get an idea of the price increase of Davidson motorcycles, the previous tariffs were of a 6%, now they reach a 31%. That is, to get on and show off our leather jackets on the road on top of a Harley we will have to pay $ 2,200 more.
The European market is one of the most beneficial for Harley-Davidson Inc. that sold an average of 40,000 motorcycles in the European Union last year, generating revenues similar to those obtained in the United States.
Yet "Donny" sees everything as a game and twitted that he was surprised that Harley-Davidson was the first to give in. "I fought hard for them and in the end they will not pay tariffs for selling in the EU". "Taxes are just an excuse for Harley, be patient."
On her point of view, an economist from the University of Syracuse said that more companies will follow the Harley’s decision and move their productions abroad. "You cannot blame them, many have been placed in very difficult positions", said the academic.
Although the United States denies it, the Europeans have not yielded one iota to Donald Trump’s measures, who maintained the tariffs to the productions of aluminum and steel to Europe. The European Union showed their real anger when, since last Friday, it applied punishments to imports such as bourbon, peanut butter and orange juice. It is estimated that the cost of tariffs on American products amounts to about 3,400 million dollars.
China, India and Turkey are also punishing the United States in response to tariffs.
The sad thing is that, although Harley has given the first sign of the serious implications of the commercial war for American companies, Donald Trump continues to believe this is correct and viable.
Since tariffs were announced, in addition to the automotive companies other sectors such as construction, oil and aeronautics have showed their discontent. If on the one hand the Yankee steel and aluminum industry is restored, other companies like Harley Davidson could close their domestic plants and lay off hundreds of workers, which would worsen the unemployment situation in the United States.
No obstante, Trump pretende satanizar a las barreras comerciales y a Europa como los culpables de las medidas de Harley-Davidson. La firma se ha pronunciado en múltiples ocasiones en contra de los aranceles.
However, Trump aims at demonize trade barriers and Europe as the culprits of the Harley-Davidson measures. The company has made statements against tariffs on several occasions.
Recall that the French president Emmanuel Macron has been an opponent of Trump's tariff policy and told the media that "economic nationalism leads to war", while Angela Merkel described as untrustworthy the United States, after Wilbur Ross statements on maintaining the tariffs on aluminum and steel.
If the madness of the tariff war continues, we will soon see the American motorists parading in front of the White House because their "motor horses" will no longer be produced at home.