President Donald Trump has been intent on establishing fair trade for the US. Thus, he has levied tariffs with both allies and "frienamies" alike. Some of the nations targeted for tariffs have responded with retaliatory tariffs.
One of the commodities President Trump has chosen to protect is the steel industry. Mr. Trump applied a 25% tariff on imported steel. This causes the price of many manufactured durable goods to either increase prices or shift customary operating procedures. This protectionism acts as a hidden tax on American consumers and makes US products less competitive.
Harley Davidson is an iconic American motorcycle manufacturer which has recently found success in European markets. The steel tariff raises the prices of Harley Davidson hogs by about $2,000. To try to remain competitive, the Milwaukee based company indicated that it would shift production overseas.
This news did not settle well with President Trump, who vowed retaliation on Harley Davidson.
Since retaliatory tariffs have been implemented by our trading partners, the stock market went on an eight day slide, one day dropping 500 points.
Perhaps Larry Kudlow, Trump's new Director of the National Economic Council, can convince the 45th President that when implementing threats of tariffs for "fair trade", there are unintended consequences to competitive advantage.
One of the commodities President Trump has chosen to protect is the steel industry. Mr. Trump applied a 25% tariff on imported steel. This causes the price of many manufactured durable goods to either increase prices or shift customary operating procedures. This protectionism acts as a hidden tax on American consumers and makes US products less competitive.
Harley Davidson is an iconic American motorcycle manufacturer which has recently found success in European markets. The steel tariff raises the prices of Harley Davidson hogs by about $2,000. To try to remain competitive, the Milwaukee based company indicated that it would shift production overseas.This news did not settle well with President Trump, who vowed retaliation on Harley Davidson.
Since retaliatory tariffs have been implemented by our trading partners, the stock market went on an eight day slide, one day dropping 500 points.
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| Larry Kudlow |
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