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Victims of Trump's Trade War; Harley Davidson to Move Production Out of America to Avoid EU Tari


After the Trump administration announced tariffs on European Union steel and aluminum, they retaliated with targeted tariffs on US products including motorcycles. Harley-Davidson estimated that it would lose 100 million dollars annually if they didn't take some action to off-set that loss and their stock price has suffered as a result. Harley Davidson's management had three choices:

1. Raise prices to off-set the tariffs

2. Absorb the loss themselves

3. Move their production out of the United States

Today Harley Davidson management selected option 3, rejecting price increases which would have priced them out of the European market. "Harley plans to shift production of motorcycles for EU sales from the United States to its international facilities to avoid the tariff burden." Its still unclear how many US workers will lose their jobs in Wisconsin.

This is what a trade war looks like and it was easily predictable.


#trade #news #Business

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