First Blood: Casualties From US-EU Trade Begin to Pile Up, Tariffs Threaten Iconic Western Companies

The White House is disappointed with Harley-Davidson's surrender. The manufacturer of the legendary motorcycle, which is as important to America as the Statue of Liberty, is moving some of its production to Europe in an attempt to prevent counter-tariffs from having an impact on the company's sales.

The White House is disappointed with Harley-Davidson's surrender. The manufacturer of the legendary motorcycle, which is as important to America as the Statue of Liberty, is moving some of its production to Europe in an attempt to prevent counter-tariffs from having an impact on the company's sales. Trump is already threatening to use a financial weapon of mass destruction by increasing tariffs on imported vehicles and automobile parts. That would hurt most European Union member states, especially Germany. The European Union, however, hopes that Brexit will compensate for the losses: for example, Airbus is threatening to leave Britain.

Here's Aleksandr Khristenko with a report on the new trade war.

 

Born in America, Harley-Davidson is shifting some of its production out of the United States. The trade war Trump started by promising to bring production back to the United States has backfired on him. Up until now, motorcycles meant for the European market have been manufactured in America. Going forward, they will be assembled in Brazil, India, or elsewhere. It's the only way to avoid a rapid hike in prices by $2-3,000 per motorcycle in Europe. after the European Union increased tariffs on imported US motorcycles from 6% to 31% in direct response to Trump's tariffs on European steel and aluminum.

Dwight Filey, manager of a motorcycle dealership: "Obviously, we want to keep everything here so that Americans can keep their jobs. But our brand is important to us. For it to thrive, we need to sell our motorcycles both in the United States and the rest of the world. The company's doing what's in its best interest."

Retaliatory tariffs were also imposed on bourbon from Kentucky, corn from Illinois, orange juice from California as well as boats, yachts, tobacco, and cosmetics: goods worth just under 3 billion euros per year. However, the US president is confident that it's only a drop in the bucket. He intends to win this trade war. Trump condemned the surrender by the American motorcycle manufacturer.

twitter.com/realDonaldTrump: "Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag. I fought hard for them and ultimately they will not pay tariffs selling into the E.U., which has hurt us badly on trade, down $151 billion".

The trade war is affecting everyone, sometimes in the most unexpected ways. Because of import tariffs Beijing imposed on the United States, automaker Daimler AG expects to sell fewer Mercedes-Benz SUVs assembled in the US state of Alabama. Cummins, a US engine manufacturer, may have to raise its prices, as it depends on its manufacturing plants in China. As US-China trade war escalates, the Dow Jones falls 325 points. The White House's unpredictability causes uneasiness in stock markets. Upon whom will tariffs or sanctions be imposed tomorrow?

Brexit also sparks concern. Airbus is threatening to leave Britain, which could cost the country 15,000 jobs if London exits the European Union without a transition deal.

Aleksandr Khristenko, Nikolai Koskin, Vesti, Washington, DC