Harley-Davidson to Move Some Manufacturing Overseas

Harley-Davidson announced Monday that it planned to move production of motorcycles to be sold in the European Union to overseas factories due to President Trump's escalating trade war. The iconic American motorcycle manufacturer said that the EU's 25 percent tariff, imposed to retaliate against Trump's tariffs on imported steel and aluminum, would increase the average cost of its motorcycles in Europe by about $2,200. The unspecified number of manufacturing jobs will reportedly be moved to plants in India, Brazil, and Thailand, marking a setback for Trump's "America First" policy. Trump, who has touted Harley-Davidson as a domestic-manufacturing success story, accused the company of using the tariffs as "an excuse" for moving production overseas.

Discussion Questions:

  • Why do you think Harley-Davidson has made this decision?
  • How do you think Trump will respond?
  • Do you think Harley will regret this choice? Why or why not?