Well, The Donald sure has stirred up the pot with his 25% tariff on imported steel and aluminum! Not only has he taken the pressure off American jobs, he’s really upsetting Europe. Specifically he’s upsetting the EU, the governing body of Europe. He’s also threatening to take a look at German car makers like BMW, Mercedes. The President says they export more cars to us than we export goods to them. This causes a trade imbalance in Germany’s favor. So, Germany being a major player in the EU, it’s not too surprising that the EU threatens Harley with additional taxes.
EU threatens Harley
The EU is so upset, it’s taking a look at how it can hit us back. One of the top American brands they are taking a swing at is our very own Harley-Davidson! Now, Harley’s are as popular in Europe as they are here. The whole V-twin lifestyle thing is a big brand thru almost every European country. The EU, in its wisdom, is threatening retaliation by adding a 25% tax to every Harley imported into the 28 EU states.
This means a Low Rider in Germany will increase in RRP (recommended retail price) from €16,295 ($20,197) to €20,369 ($25,247). Now, the RRP here is $14,999 so they aren’t getting much of a bargain in the first place. But if the tariff is dropped onto Harley’s, the market might get killed off real fast. With Harley-Davidson’s financial problems, this may backfire badly and there might be no winners. The President has said trade wars are good and they’re easy to win. Let’s hope he’s not throwing the baby out with the bath-water on this occasion.