EU Retaliatory Tariffs on US Goods Implemented

Harley-Davidson motorcycles are some of the first American products impacted by the tariffs imposed by the EU to move production overseas. 

Harley-Davidson

The European Union has placed tariffs on $3.2 billion worth of goods from the United States in response to tariffs imposed by the Trump administration on imported steel and aluminum, according to The Independent. This is of particular importance to motorcycle lovers, since Harley-Davidson decided to move some of its production overseas to avoid the new tariffs. 

Harley-Davidson motorcycles are one of the American-made products affected by the recent EU-imposed 25 percent tariff and the company chose to avoid being hit with large financial ramifications and instead will move its production of bikes destined for the EU overseas, Bloomberg reports. Other products that will be affected include denim, orange juice, tobacco, whiskey, and peanut butter. 

“Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag,” Trump tweeted Monday. The Bloomberg report stated that the president's tweet said he has “fought hard” for the company and said it ultimately won’t have to pay the tariffs, urging it to “be patient!”

Another 50 percent tax was levied on items such as footwear, washing machines, and some types of clothing.

The EU’s tariffs primarily affect products made in Republican-majority states and could threaten Trump’s party in the November midterm elections, reports The Independent.  Bourbon is made in Senate Majority Leader Mitch McConnell’s home state of Kentucky and Harley-Davidson makes its bikes in House Speaker Paul Ryan’s home state of Wisconsin.

A week ago, a 25 percent tariff on steel and a 10 percent tariff on aluminum affecting trade partners Canada, Mexico, and the EU, was implemented by the Trump administration. After the decision, Trump threatened to implement additional taxes on European Union cars if the EU chose to retaliate.

“It goes against all logic and history,” said European Commissioner president Jean-Claude Juncker to the Irish Parliament in regards to Trump’s new tariffs and threat. He continued on to say that the EU would “do what we have to do to rebalance and safeguard” against the tariffs.

The European Union has also filed a case with the World Trade Organization, claiming that the Trump administration’s tariffs were “pure protectionist” and “illegal.” They threatened a second set of tariffs on $4.3 billion worth of U.S. goods if nothing was resolved.