Talking Points:
- The US motorcycle manufacturer has faced criticism from consumers and the President alike
- Shares of Harley Davidson have lost 25% since the beginning of the Trump administration
- The ‘Hog’-producer is one of many US companies that have faced criticism over plans to move production
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The United States’ import duty on steel and aluminum have been in effect against the European Union, Mexico, and Canada for nearly a month. In turn, the retalitory tarriffs from the EU have been in place long enough (June 22) to begin showing a tangible impact on at least one widely known US brand. Harley Davidson announced plans to shift production abroad after registering it would feel the impact from the trade wars due to the EU’s actions. In response, President Donad Trump took to Twitter to dissuade the company to change its course, or else. The motorcyle maker is one of many US corporations that have faced criticism from the President over their proposed plans.
A Brief History of Trade Wars[2]
Harley Davidson
A staple of American culture, the motorcycle’s shares have been in steady decline since President Trump took office – a notable contrast to the performance of broader indices. With sales slipping and domestic interest waning, the company has developed a plan to produce 50% of revenue outside of the United States. Currently, international revenue rests near 40% with the EU contributing 16%, the largest chunk of international sales. As the EU imposes retaliatory tariffs against the US, Harley now faces a 31% duty on bikes imported from the US,
