Trump Pissed At Harley-Davidson

Ken AshfordEconomy & Jobs & DeficitLeave a Comment

“I’ve done so much for you”?  He even makes this personal.

Harley-Davidson’s decision to move production of motorcycles bound for European countries out of the U.S. was due to European Union tariffs on its products.  The EU was responding to Trump’s tariffs.

On announcing its move, Harley said “”the tremendous cost increase, if passed on to its dealers and retail customers, would have an immediate and lasting detrimental impact to its business in the region, reducing customer access to Harley-Davidson products and negatively impacting the sustainability of its dealers’ businesses.”

Translation for Mr. Trump: Unlike real estate, cars and motorcycles are a global market.

Trump doesn’t get that, and this is only going to get worse. He is going to have some explaining to do to Wisconsin cranberry farmers, Florida orange-juice producers, and Iowa soy and corn growers.

Trump’s global trade war has escalated with various U.S. allies in recent weeks.

Trump last week threatened to impose a 20 percent tariff on all European cars entering the U.S. and had ratcheted up his rhetoric on trade with Canada and Mexico, making the future of the North American Free Trade Agreement (NAFTA) uncertain.

The market has not liked it much either. On January 2 of this year, the Dow closed at 24,922.  As of today (right now), it is down 500 from that mark, and it has been lower