Trump is threatening Harley Davidson for acting rationally.
On the other hand, the EU imposing 31% tariffs on Harleys is outrageous. As much as I acknowledge the value of free trade, I can viscerally support similar tariffs on the German cars that clog our local streets.
I pointed out in another thread that the EU tariff was actually less than the VAT and other taxes they impose on their own domestically made products in many cases. In Denmark for example, they have a 100% VAT tax (it was 180% up until a few years ago) on cars made in the EU. In other words, even with a 20% tariff on autos, that was an 80% tax discount over a German made car. It actually encouraged importation to the point, Ford had been selling more cars in Europe than many European brands.
If the EU wants to punish their citizens with a tariff (after all it is the consumer who pays) that doesn't make it right for us to do so.
It also meant that in some cases, like with BMW and some Porsche models, it was cheaper for them to open plants here, make them here, and import them back to Europe with the 20% tariff versus EU VAT. many German labels you see on American rodes were made in Kentucky and Tennessee.
At that, as we see with the case of Ford's sales there, if you don't have government interventionism and let our companies figure it out and adapt, we win. Even in spite of what the EU does.
