- Aug 4, 2016
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- I ride a
- 2014 Harley Davidson (FLHTK) Ultra Limited
My goodness do we have a mess a brewing!
Anyone here remember back when President Regan hit the Japanese motorcycles manufacturers with tariffs back in the early 80's? How did that work out in the long run?
Well, in 1981 the Honda Goldwing was being "made in America" so there are ways to adapt. But is adapting an answer?
Not really in this situation. Americans will likely see higher prices for raw materials for making motorcycles. Other countries will see even higher prices for American bikes due to retaliation but since the American manufacturers are not dominant in a lot of countries, then they will really not be missed by those looking to buy a new bike.
Whoops.
Same applies to all American made goods using the higher priced raw goods. America loses out in the world market. Whoops again.
Now I am not talking about the other American commodities that other countries are looking at increasing tariffs on but since we can see that there are other brands made elsewhere for everything, then America will lose those markets too. Whoops a third time.
So back to Honda and the workaround. Imagine American companies relocating or opening up assembly plants in other countries in order to get around the retaliation tariffs... not good for trying to bolster up the American worker unless they too move overseas.
So if all this tariff plays out. The American riders will lose. We pay higher prices all the way around, jobs leave, and our economy becomes a drag. Meanwhile, the rest of the world keeps on chugging because they can get along just fine in the global market.
So who wins? The companies. Sure they may have startup costs overseas as they relocate, but they will still be in the world market.
Talk about an interesting show to watch! Maybe I will use all the above the arguement to convince my wife that I need to go ahead and buy my next bike now just to head off the inflation . . .
