Connect with us

Latest

News

Europe

Harley Davidson to move production overseas in response to tariffs

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

Published

on

476 Views

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.

 

 

Liked it? Take a second to support The Duran on Patreon!
Advertisement
1 Comment

1
Leave a Reply

avatar
1 Comment threads
0 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
1 Comment authors
John C Durham Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
John C Durham
Guest
John C Durham

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.

Latest

James Woods Suspended From Twitter Over Satirical Meme That Could “Impact An Election”

James Woods crushes Jack Dorsey: “You are a coward, @Jack.”

Alex Christoforou

Published

on

Via Zerohedge


Outspoken conservative actor James Woods was suspended from posting to Twitter over a two-month-old satirical meme which very clearly parodies a Democratic advertisement campaign. While the actor’s tweets are still visible, he is unable to post new content.

The offending tweet from July 20, features three millennial-aged men with “nu-male smiles” and text that reads “We’re making a Woman’s Vote Worth more by staying home.” Above it, Woods writes “Pretty scary that there is a distinct possibility this could be real. Not likely, but in this day and age of absolute liberal insanity, it is at least possible.”

According to screenshots provided by an associate of Woods’, Twitter directed the actor to delete the post on the grounds that it contained “text and imagery that has the potential to be misleading in a way that could impact an election.

In other words, James Woods, who has approximately 1.72 million followers, was suspended because liberals who don’t identify as women might actually take the meme seriously and not vote. 

In a statement released through associate Sara Miller, Woods said “You are a coward, @Jack,” referring to Twitter CEO Jack Dorsey. “There is no free speech for Conservatives on @Twitter.

Earlier this month, Woods opined on the mass-platform ban of Alex Jones, tweeting: ““I’ve never read Alex Jones nor watched any of his video presence on the internet. A friend told me he was an extremist. Believe me that I know nothing about him. That said, I think banning him from the internet is a slippery slope. This is the beginning of real fascism. Trust me.”

Nu-males everywhere non-threateningly smirk at Woods’ bad fortune…

Liked it? Take a second to support The Duran on Patreon!
Continue Reading

Latest

Another witness named by Ford becomes third person to deny being at party

A woman believed to have been one of five people at a party 35 years ago where Ford claims she was assaulted by Kavanaugh is now the fourth person to deny being at any such party.

The Duran

Published

on

Via The Washington Examiner


A witness, reportedly named by Christine Blasey Ford as one of the people at the high school party where Supreme Court nominee Brett Kavanaugh allegedly sexually assaulted her, told the Senate Judiciary Committee on Saturday she was not there.

The attorney for Leland Ingham Keyser told the Senate Judiciary Committee that Keyser does not remember being at the party Ford described as the location of the alleged assault.

“Ms. Keyser does not know Mr. Kavanaugh and she has no recollection of ever being at a party or gathering where he was present, with, or without, Dr. Ford,” Keyser said in the statement. CNN reported Keyser is a lifelong friend of Ford’s.

Keyser, whom the New York Times reported is one of the people Ford named as being in attendance at the party, is the third witness who has denied knowing about the alleged assault. Mark Judge and Patrick Smyth said earlier this week they did not remember the party in question.

Kavanaugh has denied Ford’s allegation.

The news comes after Ford, through her attorneys, tentatively agreed to testify on Thursday, after days of negotiations over the timing and conditions of her

Committee chairman Sen. Chuck Grassley, R-Iowa, had repeatedly extended deadlines set for Ford’s team on the decision, including three on Friday and one at 2:30 p.m. Saturday. Grassley threatened to proceed with a committee vote on Kavanaugh’s nomination Monday if he did not hear from Ford.

“Five times now we [have] granted extension for Dr Ford to decide if she wants to proceed [with] her desire stated one [week] ago that she wants to tell senate her story,” Grassley tweeted Friday. “Dr Ford if u changed ur mind say so so we can move on I want to hear ur testimony. Come to us or we to u.”

The extended discussions have been labeled a delaying tactic by some Republicans.

Ford’s attorneys and Grassley’s aides will reportedly continue negotiations Sunday on the details of the conditions of Ford’s testimony, per the New York Times.

Liked it? Take a second to support The Duran on Patreon!
Continue Reading

Latest

Was NYT Story About Rosenstein ‘Coup Attempt’ A Setup?

The New York Times is reporting that Rod Rosenstein pushed a plan to record President Trump and invoke the 25th Amendment to remove Trump from office.

Published

on

Via Zerohedge


Is the FBI trying to goad President Trump into firing the man in charge of supervising the Mueller probe? That’s what Sean Hannity and a handful of  Trump’s Congressional allies think.

According to a report in Politico, Republicans in Congress are approaching a story about Deputy Attorney General Rod Rosenstein attempting to organize a palace coup with extreme caution, despite having twice nearly gathered the votes to remove him in the recent past.

On Friday, the NYT reported a bombshell story alleging that Rosenstein had tried to recruit administration officials to secretly tape conversations with the president in order to help justify removing Trump under the 25th amendment. Rosenstein vehemently denied the story, which was largely based on confidential memos written by former Deputy FBI Director Andrew McCabe. And others who were reportedly in attendance at meeting between McCabe and Rosenstein said the Deputy AG was being “sarcastic” when he suggested that the president be taped.

Meanwhile, Trump allies including Ohio Congressman Jim Jordan and Florida Congressman Matt Gaetz are saying that the story should be treated with suspicion. Jordan and Freedom Caucus leader Mark Meadows once filed articles of impeachment against Rosenstein. But now, both Meadows and Jordan intend to proceed with caution, telling Politico that he would like to see the memos that the story was based on.

House Freedom Caucus leaders Mark Meadows and Jim Jordan, who led a charge to impeach Rosenstein this summer, have said they want to hear from Rosenstein and see documents allegedly describing the comments before they decide what to do.That’s awarded Rosenstein a courtesy they’ve never given him in the past.

“I think Rod needs to come before Congress this week and explain under oath what exactly he said and didn’t say,” Meadows said at the Values Voters Summit Saturday.

The newfound hesitation to oust Rosenstein highlights a cautious approach Trump allies have adopted as the Republican party barrels toward a potential bloodbath in the midterms. Some Republicans fear Trump firing Rosenstein now would only further energize Democrats making the case to voters that the president is corrupt and needs to be reined in by a Democratic House.

[…]

In a Friday interview, Jordan, one of Rosenstein’s fiercest critics in Congress, sidestepped questions about whether the House should revisit Rosenstein’s impeachment or try to hold him in contempt of Congress. Rather, he said, a more focused push to obtain sensitive documents from the Justice Department — which Trump’s allies say would expose anti-Trump bias and corruption the FBI — is the most urgent priority.

“I want to see those memos and evaluate them,” said Jordan, who has clashed publicly with Rosenstein over access to documents and accused him of threatening House Intelligence Committee staffers, an allegation Rosenstein denied.

Politico cites two possible explanations for lawmakers’ hesitation: Republicans are running out of time before members devote themselves full-time to their reelection campaigns. Republicans are worried that the story could have been intentionally planted to provoke Rosenstein’s firing in order to improve Democrats’ chances of retaking the Senate AND the House (Trump actively moving to crush the Mueller probe would be quite the propaganda win for the Dems).

Sean Hannity took this latter theory a step further during his show on Friday evening, where he urged Trump not to fire Rosie and instead insisted that the story could have been a “trap”. He added that he had been told by “multiple sources” that the story was planted by unspecified “enemies of Trump.”

“I have a message for the president tonight,” Hannity said Friday night. “Under zero circumstances should the president fire anybody…the president needs to know it is all a setup.”

Still, a handful of conservative commentators, including Laura Ingraham, urged Trump to fire Rosenstein immediately. And for Trump’s part, he hinted at a rally Friday night in Missouri that he planned to “get rid” of the “lingering stench” at the DOJ, which many interpreted as a hint that his firing is imminent.

Liked it? Take a second to support The Duran on Patreon!
Continue Reading

JOIN OUR YOUTUBE CHANNEL

Your donations make all the difference. Together we can expose fake news lies and deliver truth.

Amount to donate in USD$:

5 100

Validating payment information...
Waiting for PayPal...
Validating payment information...
Waiting for PayPal...
Advertisement

Advertisement

Quick Donate

The Duran
EURO
DONATE
Donate a quick 10 spot!
Advertisement
Advertisement

Advertisement

The Duran Newsletter

Trending