Tit-for-tat: World responds to Trump's tariffs with levies on US goods

Aka the 4th Reich

 

Harley-Davidson will be 'taxed like never before' if it moves production overseas - Trump
Published time: 26 Jun, 2018 14:46

© Henry Nicholls / Reuters

US President Donald Trump has warned legendary motorcycle maker Harley-Davidson of unprecedented tariffs if the company moves part of its production abroad.

"A Harley-Davidson should never be built in another country – never! Their employees and customers are already very angry at them. If they move, watch, it will be the beginning of the end – they surrendered, they quit! The Aura will be gone and they will be taxed like never before!"Trump tweeted.

"Early this year Harley-Davidson said they would move much of their plant operations in Kansas City to Thailand," Trump continued. "That was long before Tariffs were announced. Hence, they were just using Tariffs/Trade War as an excuse."

On Monday, Harley-Davidson announced it is moving some production overseas because of retaliatory measures from the EU against Trump’s duties on steel and aluminum from the bloc. No production will be moving to Europe as a result of the tariffs, the company said. Harley's overseas manufacturing plants are in Brazil, India, Australia and Thailand.

EU tariffs will add $2,200 to the cost of an average motorcycle, Harley-Davidson said in a Securities and Exchange Commission filing. Tariffs will add $30-45 million to the company’s expenses this year, amounting to “an immediate and lasting detrimental impact” to its business.

Trump responded on Monday by saying he was "surprised" by Harley's decision adding that the company’s move comes despite the fact that he “fought hard for them.” Last year, he publicly thanked the motorcycle maker for "building things in America" and criticized other companies for moving production overseas.

 

The loser is America's working middle class, who will pay much more for goods due to Trump's refusal to listen to people who have experience in these matters.

 

We are the largest consumer of goods by far. Other countries rely on us buying their things.

Since consumer goods will cost more, in the end the consumers will buy less. Yes?

If we buy less from our rivals, who will the real looser be?

If other countries are willing to kill their economies in order to hurt ours, then thats their loss.

 

Not necessarily. Consumers have to live and whatever they buy will cost more. We will head for a global recession with your reasoning
and I see the American working class suffering greatly as history has shown.
Let's remember that the wealthy will not be affected, so Trump doesn't care.

 

They have to live...right
Our largest export is food. We are the bread basket. I doubt that the price of food will change much. Or the cost of dipers or other such necessities for that matter. They will have no problem living.

Consumers can live with less toys though.

 

We export a lot of livestock and farm products, and already the farmers are feeling the crunch as the countries that we export to are arranging to buy elsewhere. This tariff thing is not a good idea.

 

REclaiming national sovereignty? What a total crock of bullshit.

The richest, most powerful nation in the history of humankind, is not a sovereign nation.

The rrrwf is fueled by their twisted notions of superiority and abetted by a library of bullshit superficial "high falutin" bumperstickers that they think explains all. I mean who knew how "complex" such things as democratic governance, international trade and healthcare could actually be.

 

https://www.theguardian.com/politic...warns-trump-against-triggering-full-trade-war

 

Simple math would indicate that the US cannot come out worse in a trade war, than the status quo. Tariffs are bad. Reciprocal tariffs are necessary, if one is to ever reach a zero tariff agreement. I think the US should match any tariff levied against us, on ALL goods from the offending nation, then offer the choice of zero tariffs as an alternative to that.

 

Zero trade tariffs or true free trade would mean all those international manufacturers would locate in the nation where they could produce their goods at the lowest per unit cost.


Trump's tariffs have produced a couple of real world facts: US steel prices are 50% HIGHER that the rest of the world and US softwood lumber is 30% higher.
You think american manufacturers can easily overcome that global competitive disadvantage?

Trade wars are messy, they are mutually injurious, they create lots of pain and tons of unanticipated consequences that increase uncertainty, costs, inhibit investment and scuttle long term corporate strategies.

Simple math when it comes to the international economy with its complex dependencies and relationships, isn't the kind to use in meaningfully analyzing international trade, although i realize Trump is showing you all the way in this regard.

 

The US can come out worse in a trade war because we are not the only country that produces goods to export. Goods can be imported from and exported to countries that don't have high tariffs. The problem is that Trump never admits when he makes a mistake, a serious character flaw. He has to learn to listen to those who have experience instead of shooting from the hip, and try to be pragmatic, hardly one of his attributes.

 

A tariff is a tariff, regardless of what you might consider "high". Every US trading partner has the option of zero tariffs. They should consider it.

Your notion that the status quo is fair, and tariff free, is laughable. Your notion that current barriers to trade, were negotiated free of corruption, is also laughable.

 

Just because a war is messy, doesn't mean it should never be fought, under any circumstance. Trade wars are not ALL about manufacturing jobs, obviously.

The notion that ANYONE thought going in, that there would be no short term reaction, is just silly. Literally not a single person alive thought that. So huffing and puffing about the short term price to paid, isn't exactly an intelligent point. The idea is everyone gets hurt, and then they agree to free trade in the end. If you are never willing to use this tool, and always willing to accept it when others use it against you, THAT is how you lose a trade war. The US has been losing a trade war for decades now, we just haven't been firing back.

 

When will america get rid of its tariffs? Or didn't you know that the US has the highest averaged tariff rate of the G7?

If only you had a clue about your own tariff system.

 

Agree to free trade? Are you freeking kidding me?

Yep all that losing on trade for decades. Who knew that losing could be so profitable?

 

Canada is scrambling to buy steel from Asia .......

 

I think everybody loses in a trade war. But China, being theoretically a less free country, has a higher capacity to make its people endure it. And they might be more willing to endure it since Trump started it.

 

not exactly Margo, I read this earlier today:
https://www.bloomberg.com/news/arti...-prepare-steel-quotas-tariffs-on-china-others

 

So your voting to lower your standard of living?
Great plan.

 

WEll of course. When our largest steel import/export market has such a gigantic price disparity with both our own domestic production and other foreign markets, you bet we are scrambling to establish secure supply relationships with others. Nothing like forcing us into diversifying, considering the literal and figurative resource gold mine that is Canada. A Happy accident of our birth.

 

Not exactly either. Using third party "transshippers" to avoid duties and sanctions is a universal trade issue. Canada and their trading partners including the US has long recognized the issue and have from time to time taken specific steps to counter this.

But this is no longer a "normal market" condition. US steel is selling at a 50% premium in the domestic market vs the global market. IOW Americans pay way more for the same product. You can bet everyone and his brother is trying to figure out how to grab a big chunk of that price disparity (foreign AND american). Capitalism can be rather predictable at times.

And guess what? Under NAFTA we are obligated to take action. Not that we wouldn't anyway because we understand what being in an economic, political, social and military partnership means. We can only wish trump achieves the same enlightenment.

 

If Trump's goal is zero tarriffs across the board as he mentioned in the G7 meeting then I hope that he succeeds wildly. If you oppose Trump on this solely because its Trump then you are both ignorant of basic economics AND rooting against America.

 

Or where they would be closest to their markets.. Look at Alcoa in Arabia... They have been very successful because Arabia has lots and lots of bauxite and and they have huge market exposure in the East.

 

U.S. tariffs funnel Asian steel to Canada's oil industry ...


U.S. tariffs funnel Asian steel to Canada's oil industry. ... Canada is a major steel producer in its own right and the biggest supplier to the United States, ...

https://www.reuters.com/article/us-...n-steel-to-canadas-oil-industry-idUSKBN1JM2DI