TRAVERSE 7
EDITORIAL
TRAVERSE:
Tariff Trouble!
It ' s becoming harder to look away from the car crash that is so called ' reciprocal tariffs ', those being applied to almost every nation on the planet by the United States ' government. The President Trump led reforms have seen many nations retaliate with their own tariffs, a move that most agree will have dire effects.
I was recently asked if I would like to take a 50 % share in a motorcycle purchased in the USA before the tariffs were applied, to ride across the nation and then sell at the other end, presumably for a profit due to the tariffs now being applied. Having recently ridden a similar bike, I ' m glad I declined. But the offer did get me thinking.
You see, tariffs applied to imported metals during Donald Trump ' s previous administration drove the price of manufacturing a brand-new Harley Davidson up by as much as 25 %. A cost that the American manufacturer decided to take on itself. To offset these added costs, HD decided to start manufacturing some of its bikes offshore. It was unthinkable that the great US brand now needed to manufacture in Brazil and Thailand to keep costs down.
Tariffs have arisen again and this time it looks like it could be the final straw for Harley Davidson as Europe, the brands second largest market, returns fire to Trump ' s economic policies.
It ' s being suggested that some of Europe ' s retaliatory tariffs could see the shelf price of a new HD be as much as 100 % over that of in the USA, allowing for other taxes( not tariffs) already applied, meaning the price of a new Road Glide could be as much as US $ 125,000 in countries such as Denmark.
Regardless of which side of the fence you sit, it does seem that Trump ' s tariffs will have an effect that is far further reaching than just the USA, and an effect that will impact not only bike sales but also an industry that is global. Think of your next adventure ride or tour, prices will be going up and probably in the places where you least expect it. Who knows where the pain will end.
Leigh
TRAVERSE 7