President Trump signed off on tariffs for steel and aluminum, despite the fact that his own economic adviser, Gary Cohn opposed the tariff as well as House Speaker Paul Ryan. Cohn was believed he would resign over the tariff and he did so shortly after President Trump’s announcement.
The Republican party was also against the tariffs and one hundred republicans signed a letter directed towards Trump to not sign off on the tariff, concerned that it would offset any gains made by their tax overhaul.
Under Trump’s Plan, steel imports will have a twenty-five percent tariff and ten percent for aluminum imports.
As a result, the President of the European Commission, Jean-Claude Juncker stated publicly imports such as Harley-Davidson motorcycles, bourbon, Levi Strauss jeans, T-shirts maize, and cosmetics will be taxed.
Right off the top, the tariff will increase the costs of production for Harley Davidson as will sales. After the announcement, HOG stock decreased by four percent. According to Newsweek, Europe is Harley-Davidson’s largest market outside of the United States, comprising for a total of sixteen percent of motorcycle sales and more than forty-one percent of all international sales.