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Harley Davidson to move production overseas in response to tariffs

This is how trade wars work: fewer jobs and more expensive goods

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US President Donald Trump campaigned on the idea of repatriating American manufacturing in order to create more jobs that pay livable wages, like in the good ol’ days when America was ‘great’ and prosperity was experienced by the bulk of the population.

So Trump has embarked on a trade war with America’s trading partners to convince the manufacturers to bring production back home and America’s trade allies to provide more equitable trade terms to America.

It sounds great on the surface, except that it doesn’t quite work like that. Trump levied tariffs of 25% on steel and 10% on aluminum imports across the board, which has met with retaliatory tariffs from lots of countries, including the EU.

Relative to that last point, some of America’s manufacturers, which employ Americans, are experiencing issues remaining competitive in the market due to the cost increases which these tariffs present, both those realized as a result of Trump’s tariffs as well as those imposed by other countries in which these manufacturers market.

One of these is Harley Davidson, one of those iconic American luxury products that is viewed as a symbol of American freedom and expression, and used by Trump as an example of these historically. The motorbike manufacturer is sending some of its production to other countries, like Brazil, Thailand, and India, where it can construct the end product and export to Harley Davidson’s second largest market with a much easier tariff burden, the EU.

Deutsche Welle reports:

In a regulatory filing on Monday, Harley-Davidson said each of its motorcycles shipped to the European Union would cost about $2,200 (€1,880) more after the bloc raised its levies on imported US bikes to 31 percent from 6 percent on June 22.

This would cost the company about $90 million to $100 million annually, the manufacturer said, adding that it was striving to absorb extra costs rather than pass them on to customers in the medium-term.

“Harley-Davidson believes the tremendous cost increase, if passed onto its dealers and retail customers, would have an immediate and lasting detrimental impact to its business in the region,” it said in the filing.

In order to avoid the impact of higher EU tariffs on its sales, the company also announced that it would be “implementing a plan to shift production of motorcycles for EU destinations from the US to its international facilities.”

On Friday, the EU began rolling out tariffs worth $3.4 billion on American imports like bourbon, peanut butter, orange juice and Harley-Davidson motorbikes. The measure came in response to new US duties of 25 percent on steel and 10 percent on aluminum imposed by the Trump administration.

Critical European market

The Milwaukee-based company sold almost 40,000 motorcycles in the EU last year, generating revenue second only to the United States.

US President Donald Trump has repeatedly used the company as an example of how European import tariffs hurt US producers. Yet Harley-Davidson had previously warned that the escalating tariffs spat would lead to an even higher burden for the company.

On Monday, the company tried to smooth troubled waters, saying its shift of production abroad would not dent its “strong commitment to US-based manufacturing” which riders around the world valued.

“Increasing international production to alleviate the EU tariff burden is not the company’s preference, but represents the only sustainable option to make its motorcycles accessible to customers in the EU and maintain a viable business in Europe. Europe is a critical market for Harley-Davidson.”

The company said ramping up production at non-US plants, which are located in India, Brazil and Thailand, would require additional investment and take at least nine to 18 months to complete. It also said it hoped to limit the cost from higher EU tariffs to between $30 million to $45 million in the meantime.

Harley-Davidson is the first American manufacturer to detail the financial impact of the escalating trade tensions between Washington and its allies. Its announcement comes hard on the heels of an earnings warning by German carmaker Daimler last week.

Daimler, which also produces its premium Mercedes cars in the US, said its 2018 profits were expected to be hit by higher Chinese tariffs on imports of American-made cars.

This means that more jobs are going to India, Brazil, and Thailand, and, since this means less production in America, it means a lesser need for the same amount of jobs in America which were being provided prior to the the tariffs war between America and Harley Davidson’s second largest market, meaning less jobs for Americans. This is how trade wars work, and this is exactly what Trump has scored for the American public: fewer jobs, fewer wages, and more expensive goods.

 

 

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Lot’s of theory here. Sounds good. But, Harley can make it here on a level playing field. They might have to call Wilbur though and give him some details about their situation and explain why they can’t make enough money. Maybe Harley wants too much money? Most American companies are set up so those at the top get it all. The rest are slaves. The 1% didn’t come into being in this country overnight.

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Russia’s economy continues to outperform as gold takes center stage (Video)

The Duran Quick Take: Episode 118.

Alex Christoforou

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The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris examine how US and EU sanctions have continued to provide a huge boost to Russia’s economy. Russia’s food sovereignty has practically been achieved, as the Russian central bank continues to buy gold and lower its exposure to western financial markets.

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Via TASS…

Outside pressure in the form of sanctions has become an incentive to resolve various issues of Russia’s economy, Russian Security Council Secretary Nikolai Patrushev stated in an interview with the Izvestiya daily.

He noted that through introducing sanctions against Russia, “the West aims to destabilize Russia’s economy and to create social and political tensions in society.”

“But during the difficult times, Russians have always stuck together and mobilized their resources in order to ensure the country’s sovereignty. This is what is happening now – the outside pressure has become an incentive to resolve many problems in Russia’s economy,” he said.

“Before the sanctions, it seemed that we would never be able to feed ourselves and that we are doomed to be dependent on Western import. However, right now, Russia’s food sovereignty in crucial sectors has practically been achieved, and in some areas, Russia has become the leading exporter,” Patrushev noted.

Those who apply the sanctions “can see that they (the sanctions – TASS) are ineffective and often achieve the opposite goal,” the Russian security chief concluded.

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US Neocon Foreign Policy and the War Waged Against Serbia

The Serbian assault began first by a ‘financial war’; by sanctions and finished off by an aggressive unprovoked incessant NATO bombing campaign.

Richard Galustian

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The ‘witch-hunt’ against President Trump over Russian collusion has officially ended, following the submission of the Mueller Report, enabling us to now focus on the real problems of America that effects the whole world.

In the hope of a waining of the Russophobia in America, let’s look at the US’s recent war history by starting with the 20th anniversary this month of the NATO war on Serbia in 1999 which amounted to almost 100 days of bombing of historic cities and infrastructure.

Firstly, these problems are, in the main caused by the Neocons, or Deep State, whatever you wish to call them, and the continuing promotion, by the US Military-Security Industrial Complex, of wars and regime change and secondly, Trump’s unreserved support for Israel, regardless of war crimes they may continue to commit against the Palestinians.

Incredibly after that one sided unjust and illegal war that NATO executed, NATO has the audacity to invite Serbia to join it! Something that will never happen. What do they smoke in DC, in the Pentagon and Brussels based NATO?

To compound these overall problems, the US Military and Israeli Defence Forces collaborate on these US regime change policies on all continents evidenced most recently by the arrival of crack Israeli troops last month in Brazil, prepared to support an attack potentially by Brazil and Columbia on Venezuela.

As, has now come to be expected, America pursues its Venezuelan regime change with full main stream media (MSM) cooperation, using well proven sophisticated propaganda techniques along with a variety of pretexts.

From Serbia to Iraq to Libya, where does it end? Observe that Trump is now seeking a ‘NATO alliance’ offering NATO status, to President Bolsonaro of Brazil to back the invasion of Venezuela.

So it is important to remember, as an example, that after a long war of economic and financial destabilization ended with the bombing of Serbia.

Serbia was previously a part of Yugoslavia, a country which had successfully evolved after 1945 to solve the old rivalries of the 19th and early 20th Century Balkan ethnic animosities which was, prior to the advent of power of President Tito, its past history.

The United Nations, instead of supporting, in effect, so called ‘humanitarian wars’ and ‘regime change wars’ by the US, using NATO, helped and relentlessly driven home by MSM outlets like CNN and FOX NEWS into people’s heads, must finally take a stand.

So too, Yugoslavia, once the envy of many in the world, given its then ‘non-aligned’ status under President Tito, was destroyed and broken up; ‘Balkanized’ in the early 1990s.

The Serbian assault began first by a ‘financial war’; by sanctions and finished off by an aggressive unprovoked incessant NATO bombing campaign. That’s what we can expect in Venezuela next.

This ‘Balkanization’ strategy similarly applies to Afghanistan, Iraq, Libya, Syria et al. It serves US Neocon interests to dismember States in the world and create smaller more ‘manageable’ countries.

‘Regime change’ runs against the intent, the very words contained in the US Constitution. No one in MSM ever reminds us of that fact. Nevertheless America’s ambition to overthrow other States continues, which they arrogantly now make no secret of. The next States will probably be Nicaragua then Iran to name but two.

A very noteworthy most recent outrageous unilateral declaration was made by President Trump, not yet formally agreed by US institutions, ‘giving’ something he has no authority to give; Syrian territory, the Golan Heights to be precise, to Israel. Something that one day could trigger a full scale Arab-Israeli War.

This is of extreme importance yet no real outcry comes from world leaders; well not so far.

The main reason for that decision given by senior US Administration figures is that “God anointed Trump to save the Jews”.

Not forgetting Trump’s need (which we the people don’t understand exactly why) to support Prime Minister Netanyahu in his difficult upcoming elections in Israel – in part because both countries failed to ‘regime change’ Syria – but more importantly to help the ‘financial terrorists’ who formed a company jointly that has already started drilling for oil in the Golan Heights. You might like to know who owns such oil drilling company which should answer a plethora of questions in one go that you must be asking yourselves.

The shareholder’s names tells us everything; Dick Cheney; Baron Rothschild and Rupert Murdoch. The titular heads of neocons, bankers and media on the planet.

In ending there is no more evidence required for us, the people of the world, to rise up against the globalist dark forces wherever they exist, be it in Brussels, London, France or Washington. We must demand democratic elections or start revolutions, the latter has already begun in France in the form of ‘the yellow vests’. And Brexit, by definition, is a rejection by the British people of globalism and American Hegemony.

The pattern of US destabilization and destruction of States to loot them of their sovereign resources is the unseen history of the last 100 years, not taught in any university, anywhere in the West.

As far as Ukraine is concerned, its government was taken down by the CIA and replaced by an ultra fascist regime that has full backing from America. This is no secret. But the MSM simple don’t report it.

US led NATO is ‘the transnational war machine’ of the world, devouring almost all free countries wealth. It can extort to terrorize all into conformity to the global ‘carcinogenic’ US Neocon imperialistic strategy.

A total estimated 20m people around the world have died since the end of WW11 at the hands of US Forces. Think about that for a moment.

One of the most famous sayings attributed to America’s great President Abraham Lincoln is about deception: “You can fool all the people some of the time and some of the people all the time, but you cannot fool all the people all the time.”

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‘Dark day for internet freedom’: EU approves controversial copyright reform

Julia Reda, a German MEP with the Pirate Party, described it as a “dark day for internet freedom.”

RT

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Via RT


The European Parliament has voted to adopt the highly controversial Article 13 provision which would govern the production and distribution of content online under the auspices of increasing copyright protections.

Tuesday’s move will update the EU’s 20-year-old copyright rules and will govern everything from audiovisual content to memes, much to the dismay of many social media users who have already begun outpouring their grief online.

MEPs passed the legislation by 348 votes to 274 Tuesday. Opponents had hoped for last-minute amendments to be made but their efforts were in vain.

Julia Reda, a German MEP with the Pirate Party, described it as a “dark day for internet freedom.”

Article 13 or ‘The Directive on Copyright in the Digital Single Market’ makes all platforms legally responsible for the content hosted and shared on their platforms.

The process of updating the bloc’s copyright laws began in the European Commission two years ago, ostensibly to protect Europe’s publishers, broadcasters and artists and guarantee fair compensation from big tech companies.

By essentially forcing companies like Google, Facebook and Twitter to pay artists and publishers for the reproduction of their work online, include in meme format, the EU is effectively clamping down on online memery.

The onus will now be on tech companies to clamp down on content-sharing on their platforms, which will likely ensure yet more draconian policing of speech and content.

EU member states now have two years to pass their own laws putting Article 13 into effect.

Tens of thousands marched in protest across Germany ahead of the vote, decrying what they viewed as severe online censorship.

Tech giant Google said that while the directive is “improved” it will still lead to legal uncertainty and will damage Europe’s creative and digital economies.

Critics have argued that the only way for Article 13 to be effectively enforced would be through the use of upload filters which automatically check content to see if it’s copyrighted or not, at least in theory. However, the exact mechanics of such a system have yet to be fully debated and the potential for abuse is immediately clear.

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