Image: © Harley Davidson via Wikipedia

Harley Davidson is going to move manufacturing abroad

Well that backfired.

In the first very real consequence of the whole 'trade war' we've been talking about, Harley Davidson has decided to move some of its US manufacturing abroad.

What it means: The whole point of Trump raising tariffs on goods from other countries was to protect American businesses, consumers, and even 'national security', he said.

When Trump said he'd bump up the tax on European goods coming in the US, the EU did the same. Which is why it now costs Harley Davidson $2,200 more than previously to sell a bike in Europe, it's second largest market.

Instead of passing that tax onto consumers, they're going to keep the price unchanged, and move manufacturing abroad to save money that way by employing cheaper workers in different countries.

Interestingly, a Financial Times journalist reported that Harley workers she spoke to at a plant in Wisconsin didn't seem to upset by this. They believe Harley was going to move its plants anyway, and Trump is just doing what he needs to do to make the country great again.

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