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Jeans, Whiskey, and Cricket Balls: UK Ministers Compile Extensive 400-Page List of US Products Facing Potential Tariffs in Response to Trump.

UK officials have compiled an extensive 417-page document detailing US imports that may face tariffs as a response to Trump’s White House onslaught against global trade.

Popular items such as Levi’s jeans, Jack Daniel’s whiskey, and Harley Davidson motorcycles feature prominently in this extensive list.

These products were already subject to tariffs during the trade wars of Mr. Trump’s initial term in office.

Additionally, the exhaustive list encompasses a variety of goods, from livestock and meats like chicken wings to more unusual items including rollercoasters, cricket balls, live bees, and mannequins.

In a surprising twist that may displease the golf-loving president, the compilation includes golf clubs and balls produced in the USA.

This document was unveiled during a four-week consultation period aimed at determining the UK’s response to Trump’s tariff-related rhetoric.

Under Trump’s ‘Make America Wealthy Again’ strategy, the UK has already faced a general 10 percent tariff on its exports to the US, leading to a decline in stock markets globally.

Sir Keir Starmer and Business Secretary Jonathan Reynolds are currently working to negotiate a trade agreement that would eliminate these tariffs.

However, they have established a deadline of May 1, after which the UK may take action.

Jeans, Whiskey, and Cricket Balls: UK Ministers Compile Extensive 400-Page List of US Products Facing Potential Tariffs in Response to Trump.

Consumer favourites like Levi’s jeans, Jack Daniel’s whiskey, and Harley Davidson motorcycles are all in the astonishingly lengthy document.

But the comprehensive list also covers items from livestock and raw meat like chicken wings to rollercoasters and cricket balls.

The comprehensive list also encompasses items from livestock and raw meats such as chicken wings to rollercoasters and cricket balls.

The list was released as part of the government's four-week consultation on how to respond to Trump's tariff tirade last night.

The list was released as part of the government’s four-week consultation on how to respond to Trump’s tariff tirade last night.

The consultation stated: ‘We want to hear your thoughts on the potential impacts of any future UK tariffs on US goods, in response to recent tariff announcements made by the US government.’

‘The feedback collected will assist the Government in evaluating the implications of any UK tariff measures that could be implemented.’

Business Secretary Jonathan Reynolds informed MPs that businesses will have the opportunity to share their views on how they will be affected by any UK actions aimed at countering the US president’s global trade policies.

The Prime Minister has acknowledged that the 10 percent import tariff would have negative economic repercussions for the UK.

Officials are committed to continuing negotiations for a trade agreement with the US, while Sir Keir Starmer emphasized that ‘no options are off the table’ regarding the response.

During a Commons address on Thursday, Mr. Reynolds remarked: ‘We believe the best path to economic stability for the workforce is through a negotiated agreement with the US that leverages our shared strengths.’

‘Nonetheless, we reserve the right to take any actions deemed necessary if a deal is not reached.’

In a move that may horrify the golf-loving president, the list includes clubs and balls made in the USA.

In a move that may displease the golf-loving president, the list includes clubs and balls made in the USA.

‘To ensure that the UK retains every option available in the future, I am formally launching a request for input regarding the ramifications for British businesses of potential retaliatory measures.

‘This is a necessary step for maintaining all options on the table.

‘Over the next four weeks until May 1, 2025, we will seek the opinions of UK stakeholders on products that could possibly be included in any UK tariff reaction.

‘This effort will also allow businesses to express their views and influence the planning of any potential UK actions.

‘If we reach a point where we can negotiate an economic agreement with the US that ends the tariffs on our industries, this request for input will be suspended, and any resultant measures will be revoked.’

Mr. Reynolds added: ‘Further details regarding the request for input will be available on gov.uk later today, along with an indicative list of products that the Government considers most appropriate for potential inclusion.’

On Wednesday night, the US president announced tariffs affecting countries worldwide, with the UK’s 10 percent rate classified as the lowest ‘baseline’ rate, though the Prime Minister acknowledged that British exporters would suffer from this charge.

When addressing senior executives from major UK companies at Downing Street, Sir Keir stated: ‘Clearly, the decisions made by the US will have economic consequences both here and internationally.’

He emphasized that ‘no one benefits from a trade war’ and reaffirmed that the UK maintains a ‘fair and balanced trade relationship with the US.’

Negotiations for an ‘economic prosperity deal’ expected to alleviate the impact of the tariffs will proceed, as Sir Keir promised to ‘fight for the best deal for Britain.’

However, he stated he would ‘only pursue a deal that serves the national interest and is the right decision for the safety of working individuals.’

The Government expressed some relief that the 10 percent rate imposed on the UK is lower than those on other countries.

The EU faces tariffs of 20 percent, while Japan’s rate stands at 24 percent.

In 2023, the UK exported £60.4 billion worth of goods to the US, representing approximately 15 percent of all goods exports.

While the 10 percent blanket tariff will take effect on Saturday, the car sector has already been afflicted by a 25 percent import duty that commenced early Thursday morning.

The FTSE 100 Index experienced a sharp decline upon opening on Thursday, dropping 122.4 points or 1.4 percent in the initial minutes of trading.

Mr. Trump characterized the tariffs as ‘reciprocal’ responses to levies imposed by other countries, though the rationale for the specific 10 percent figure for the UK remains unclear.

The president also cited ‘exorbitant’ VAT rates as a barrier for US businesses, even though this tax affects all purchases in the UK regardless of origin.

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Trump Sparks Global Financial Turmoil: Stocks Dive Worldwide as Concerns Grow Over Potential 20% Tariff on All Imports to the U.S. and Its Impact on the Global Economy

UK stocks experienced a significant decline today, paralleling global market turmoil fueled by escalating concerns over Donald Trump‘s trade policies, as Keir Starmer‘s ambitions of escaping tariffs fade.

Anxiety is mounting that Mr. Trump will impose a 20 percent tariff on both allies and adversaries on what he has termed ‘Liberation Day’, April 2.

The president has voiced concerns about the United States being taken advantage of by other nations, singling out VAT as an unjust foreign tax—despite it being applied to all sales, not just imports.

The looming threat of a trade war potentially leading to a recession is inciting widespread panic in global stock markets, with Asian markets experiencing a steep drop overnight, and the FTSE 100 falling by 0.75 percent at the open this morning.

Last week, the Treasury’s OBR watchdog projected a scenario involving 20 percent tariffs coupled with retaliatory measures, warning it could trigger an inflation spike and reduce growth by 0.6 percent this year and 1 percent in 2026-27.

Sir Keir has been negotiating for a UK exemption as part of a broader agreement, contending that trade between the two nations is already balanced.

Despite his efforts, he has not been able to prevent tariffs on steel, and government officials appear increasingly resigned to the inclusion of the UK in the tariffs, at least in the initial phase.

Downing Street is reportedly contemplating imposing additional duties on US products such as Jack Daniel’s whiskey, Harley Davidson motorcycles, and Levi’s jeans.

Trump Sparks Global Financial Turmoil: Stocks Dive Worldwide as Concerns Grow Over Potential 20% Tariff on All Imports to the U.S. and Its Impact on the Global Economy

Keir Starmer and Donald Trump have held trade talks amid a frantic bid to dodge US tariffs

The prospect of a trade war has been causing near-panic on global stock markets, with Asia down sharply overnight - and the FTSE 100 dropping 0.75 per cent on opening this morning

The prospect of a trade war has been causing near-panic on global stock markets, with Asia down sharply overnight – and the FTSE 100 dropping 0.75 per cent on opening this morning

The Nikkei 225 index was down more than 4 per cent overnight as investors took fright

The Nikkei 225 index was down more than 4 per cent overnight as investors took fright

The American S&P index has been continuing its decline as the confirmation of Mr Trump's tariffs nears

The American S&P index has been continuing its decline as the confirmation of Mr Trump’s tariffs nears

The Treasury's OBR watchdog modelled 'scenario 3' of 20 per cent tariffs with retaliation last week, warning that it would spark a UK inflation surge and wipe 0.6 per cent off growth this year and 1 per cent in 2026-27

The Treasury’s OBR watchdog modelled ‘scenario 3’ of 20 per cent tariffs with retaliation last week, warning that it would spark a UK inflation surge and wipe 0.6 per cent off growth this year and 1 per cent in 2026-27

Downing Street is said to be considering retaliating with extra duties on US goods such as Jack Daniel's whiskey, Harley Davidson motorbikes and Levi's jeans

Downing Street is said to be considering retaliating with extra duties on US goods such as Jack Daniel’s whiskey, Harley Davidson motorbikes and Levi’s jeans

Sir Keir, pictured at an immigration conference in London this morning, has said the UK 'reserves the right' to introduce reciprocal tariffs on the US if a deal to exempt the UK cannot be reached

Sir Keir, pictured at an immigration conference in London this morning, has said the UK ‘reserves the right’ to introduce reciprocal tariffs on the US if a deal to exempt the UK cannot be reached

The US leader has already confirmed a 25 percent import tax on all vehicles entering the United States, a policy that is poised to impact British luxury car manufacturers like Rolls-Royce and Aston Martin.

Market turbulence intensified overnight when Mr. Trump hinted at the possibility of ‘reciprocal’ tariffs globally.

This could entail a 20 percent baseline tariff on all imports, instead of targeting specific countries based on their tariffs.

‘We would start with all nations; let’s observe the developments,’ Mr. Trump remarked to journalists aboard Air Force One.

In reaction, investors flocked to sovereign bonds and the Japanese yen, while gold prices skyrocketed to new record highs.

S&P 500 futures dropped by 0.8 percent, following a steep decline from Friday, while Nasdaq futures fell by 1.4 percent.

Mr. Trump has identified the EU as a primary target, expressing resentment that the bloc was established to ‘screw’ America. Brussels has committed to retaliatory measures.

Nevertheless, the UK currently applies a 20 percent VAT on most products and services.

A spokesperson from No10 commented on the conversation between Sir Keir and Mr. Trump last night, stating: ‘They talked about the fruitful discussions between their respective teams concerning a UK-US economic prosperity deal, agreeing to continue the negotiations at an accelerated pace this week.’

In its forecast accompanying the Spring Statement last week, the OBR considered the potential of the US implementing blanket 20 percent tariffs alongside equivalent retaliatory actions from trade partners.

It indicated that while the exact results are ‘uncertain’, UK consumer price index (CPI) inflation could rise by 0.3 percentage points.

The challenges posed by heightened inflation on real income and a deceleration in global growth are ‘expected to cause GDP to quickly dip below our primary forecast.’

This would reduce the growth estimate for the year from 1 percent to merely 0.4 percent and could decrease next year’s growth by 1 percentage point.

‘The potential for increased global trade barriers and decreased global productivity suggest that the medium-term UK GDP could be approximately 0.75 percent less than our central estimate,’ the report stated.

The National Institute of Economic and Social Research (NIESR) had previously projected that a 20 percent ‘reciprocal’ tariff could subtract 0.4 percentage points from UK economic growth over the next two years—translating to about £24 billion.

This situation could significantly disrupt the Government’s economic growth plans, especially after Rachel Reeves struggled to align the budget with cuts during last week’s Spring Statement.

The Treasury’s OBR watchdog cautioned that her £9.9 billion headroom—which is historically low—could easily be obliterated by Mr. Trump’s trade initiatives.

Mr Trump has vowed to hit foes and allies alike with levies on so-called 'Liberation Day', April 2

Mr Trump has vowed to hit foes and allies alike with levies on so-called ‘Liberation Day’, April 2

Ministers say they could bring in their own tariffs on US imports this week. This could affect popular goods like Jack Daniel's whiskey, Levi's jeans and Harley Davidson motorcycles.

Ministers say they could bring in their own tariffs on US imports this week. This could affect popular goods like Jack Daniel’s whiskey, Levi’s jeans and Harley Davidson motorcycles.

Sir Keir has affirmed that the UK ‘reserves the right’ to enact reciprocal tariffs against the US if a mutually beneficial agreement cannot be reached.

However, the OBR has indicated that the repercussions of applying reciprocal tariffs against the US may adversely affect the UK more than allowing the tariffs to take effect without intervention.

Considering the negotiations, it has been suggested that scrapping or reducing the digital services tax on major tech firms—such as social media platforms, search engines, and online marketplaces—could be on the table.

Downing Street reported that Mr. Trump extended his best wishes to the King, who has recently had to cancel events due to side effects from his cancer treatment.

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Trump Promises Reciprocal Tariffs on India and China Amid Ongoing Trade War

Washington DC: On Friday, US President Donald Trump announced plans to soon implement reciprocal tariffs targeting countries like India and China, emphasizing that the United States will impose the same tariffs that these nations apply to American products.

Trump stated, “We will soon implement reciprocal tariffs—they charge us, we charge them. Whatever a country or company, such as India or China, imposes, we aim to be fair; that is the essence of reciprocity.”

Trump Promises Reciprocal Tariffs on India and China Amid Ongoing Trade War

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He further mentioned, “We have never done that before. We were on the verge of doing so until Covid arrived.”

In a statement prior to his meeting with Prime Minister Narendra Modi, Trump had expressed concerns about India’s tariff policies, remarking that “they have the highest tariffs” and noted that “it is difficult to conduct business there.”

Trump’s comments came during a press conference where he was asked about Tesla CEO Elon Musk’s meeting with PM Modi.

“They met. I assume he is interested in doing business in India. However, it’s a challenging environment for business due to the tariffs. They have the highest tariffs. It’s quite a tough place for business operations. I would assume he met with PM Modi possibly because he is leading a company and has been passionate about this for a long time,” Trump stated.

Addressing the topic of reciprocal tariffs, Trump referenced India’s historical trade practices, using Harley-Davidson motorcycles as an example of how American firms have been compelled to establish manufacturing facilities overseas to avoid high import duties.

“Historically, India has been among those with the highest tariffs. While a few smaller countries exceed them, India imposes significant tariffs. I recall that Harley-Davidson faced challenges selling their bikes in India due to the exorbitant taxes and tariffs, which ultimately forced them to set up manufacturing there,” he noted, as reported by US Network Pool via Reuters.

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Trump Says PM Modi Is a Tougher Negotiator Than Himself

Washington, Feb 14 (IANS) President Donald Trump referred to Prime Minister Narendra Modi as a “significantly tougher negotiator” during discussions on tariffs. “He is much more skilled in negotiations than I am. It’s not even close,” Trump remarked at a press conference following their bilateral meeting, which prominently featured tariffs.

Trump, who announced a new approach for reciprocal tariffs earlier that day, criticized India as the “highest tariff nation in the world”. “Selling products in India is challenging due to their strong trade barriers and tariffs,” Trump noted, emphasizing the substantial trade deficit of $98.4 billion that the US faces as a core issue in his trade policies.

He indicated that the US might impose tariffs in response to those charged by India and other countries on US imports. “We are currently operating as a reciprocal nation,” he stated. “Whatever tariffs India imposes on US goods, we will impose the same.” He added, “This approach is straightforward—if you impose a charge, we will do the same. I believe this is just and fair for both the US and India.”

While presenting his plan for reciprocal tariffs earlier on Thursday, Trump did not define specific new tariffs but rather directed his appointees, Howard Lutnick for commerce secretary and Jamieson for international trade representative, to devise a detailed tariff strategy for each nation within 180 days. Post memorandum signing, Trump also addressed his ongoing grievance with India regarding Harley Davidson motorcycles.

“Harley Davidson faced challenges selling their motorcycles in India due to excessively high taxes and tariffs,” he commented. “I believe they established a factory in India to circumvent these tariffs,” he added. “This is a strategy others could use with us: if manufacturing is done locally, there are no tariffs.”

The White House’s fact sheet on reciprocal tariffs contained erroneous statements regarding India and Harley Davidson. The document claimed that India “imposes a 100% tariff on US motorcycles, compared to only a 2.4% tariff on Indian motorcycles.” However, it has been established that India previously reduced tariffs on heavier Harley Davidson bikes to 50% and recently adjusted them further down to 30%, while lowering tariffs for other models to 40% in the latest budget.

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Flashback: Donald Trump Comments on Harley-Davidson’s Struggles in the Indian Market due to Trade Tariffs

  • Donald Trump has issued a warning regarding reciprocal tariffs, which would result in the US imposing the same tariff rates as those levied by other countries on American exports.

Flashback: Donald Trump Comments on Harley-Davidson’s Struggles in the Indian Market due to Trade Tariffs
Harley-Davidson currently partners with Hero MotoCorp in India, with the X 440 being their first collaboratively designed model.

US President Donald Trump has advocated for reciprocal tariffs on countries, corresponding to the rates at which they impose tariffs on American goods. During discussions with Prime Minister Narendra Modi, Trump criticized India’s high tariffs on US-manufactured Harley-Davidson motorcycles.

Also Read: Discover Harley-Davidson bikes in India

In his second term, Trump has reiterated the notion of reciprocal tariffs, asserting that this aligns with his vision of equitable trade practices. He previously imposed a 25% tariff on specific imports from Canada and Mexico, though that initiative was temporarily paused until the end of February. He has also targeted regions like the European Union, China, and India. “Currently, we are a reciprocal nation… Whatever tariffs India charges us, we will reciprocate, and I believe this is only fair,” he stated. “I recall when Harley Davidson struggled to sell their motorcycles in India due to steep taxes and tariffs, which led them to establish local manufacturing to circumvent these costs. Others might consider similar strategies in their dealings with us.”

While both India and the US maintain significant trade relations, Trump’s tariff threats do not single out any specific country. By promoting domestic production and leveraging his presidential campaign on the promise of creating more American jobs, Trump signals his desire for production capacities to develop or increase in the United States rather than relying heavily on imports.

What happened to Harley-Davidson in India?

Harley-Davidson entered India in 2009, launching its first dealership in 2010. Known as a premium brand in the US, Harley initially imported models such as Sportster, Dyna, VRSC, Softail, and CVO. However, as the years went by, the company began to locally assemble certain models, including the Street 500 and 750 in Bawal, Haryana.

Despite the vast two-wheeler market in India, penetrating the premium segment posed significant challenges. In September 2020, Harley-Davidson announced its exit, citing weak demand and disappointing sales figures. However, it wasn’t a complete exit; the American company partnered with Hero MotoCorp in October 2020, designing a framework for Hero to enable sales and servicing of Harley’s motorcycles. By 2023, their first joint project, the Harley-Davidson X440, launched at a price of 2.30 lakh (ex-showroom).

Stay informed about Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India, and the exciting technologies reshaping the automotive industry.

First Published Date: 14 Feb 2025, 12:50 PM IST

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Trump Criticizes US Trading Partners as ‘Worse than Our Enemies,’ Announces ‘Reciprocal Tariffs’

Trump Criticizes US Trading Partners as ‘Worse than Our Enemies,’ Announces ‘Reciprocal Tariffs’

Just hours before his meeting with Prime Minister Narendra Modi, US President Donald Trump announced his strategy for broad “reciprocal tariffs” that will impact both allies and adversaries, heightening global trade tensions that experts warn could result in domestic inflation.
“To ensure fairness, I’ve decided to impose a reciprocal tariff,” Trump stated in the Oval Office. “It’s fair for everyone. No other nation can argue against it.”

In his Oval Office address, Trump reaffirmed his stance, saying that American allies often act “worse than our enemies” regarding trade issues.

The president also remarked that India imposes “enormous” tariffs, which hindered Harley Davidson’s ability to sell motorcycles in that country. “India is traditionally at the forefront when it comes to tariffs. There are a few smaller nations that charge more, but India’s tariffs are significant. I recall that Harley Davidson was unable to sell motorcycles in India due to excessively high taxes and tariffs, which forced them to establish a factory there to circumvent paying those tariffs. This approach is something others can pursue with us as well. They can set up plants or factories here, which applies to industries like healthcare, automotive, and semiconductor manufacturing,” Trump explained.
The tariffs will be specifically tailored for each trading partner, considering non-tariff factors such as value-added tax (VAT).
This announcement came just before Trump’s planned meeting with PM Modi in Washington. Analysts believe that developing markets like India and Thailand, which impose higher effective tariffs on US goods, could be significantly impacted, while countries with existing trade agreements may experience less disruption.
Peter Navarro, the president’s trade advisor, openly criticized the European Union’s VAT practices, remarking that “Major exporting nations around the globe undermine our markets with severe tariffs and even harsher non-tariff barriers.”
The United States will initially focus on those economies experiencing the largest trade deficits or exhibiting “most egregious issues,” as indicated by a White House representative.
The unnamed official suggested that the implementation of these tariffs could take “a few months, but not much longer than that.”
Trump acknowledged the likelihood of price hikes due to these tariffs but remained hopeful about future market stabilization.
Since taking office, Trump has enacted multiple tariffs targeting key trading partners, contending these actions rectify unfair practices and can drive policy changes.
The president perceives tariffs as means of generating revenue, resolving trade imbalances, and leveraging diplomacy.
The White House representative highlighted unfair trade practices and the absence of reciprocity as contributing factors to America’s ongoing trade deficit.
The memorandum he signed instructs the US Trade Representative, Secretary of Commerce, and other officials to suggest country-specific remedies.

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Trump Announces 25% Tariffs on Steel and Aluminum Imports, Warns of Additional Measures Ahead

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India Takes Steps to Protect Itself from Potential Trump Tariffs

 

New Delhi: India has initiated an extensive analysis by sector, developing multiple scenarios to brace for a potential increase in tariffs on goods exported to the United States during the Donald Trump administration, according to various sources familiar with the situation. “Different ministries and departments are evaluating a range of scenarios in anticipation of such a move by the US and exploring possible countermeasures,” one source stated.Also Read: Trump’s stark warning to India risks significant consequences

President-elect Trump stated on Tuesday that the US would introduce reciprocal tariffs on Indian products due to the high tariffs imposed by New Delhi on American goods. Experts suggest that India might need to reassess its import duties on specific items and could offer increased market access for certain American imports to alleviate Trump’s concerns.

Previously, the US has raised concerns regarding the high import duties on Harley Davidson motorcycles, as well as limited access for medical devices, equipment, and dairy products in India.

Addressing US Concerns

Officials assert that India’s most favoured nation (MFN)-weighted average import tariff is relatively low, approximately 5-6%. While select agricultural products encounter higher tariffs, even those are significantly lower than the rates outlined by the World Trade Organization (WTO). They note that most countries, including the US, apply elevated tariffs and various non-tariff barriers on agricultural goods. For instance, dairy products, fruits and vegetables, cereals, food preparations, and oils in the US face tariffs as steep as 130-190%.

One insider mentioned that any thorough evaluation of the impact or necessary measures can only occur after the Trump administration officially takes over on January 20.

Experts suggest that New Delhi has the option to impose retaliatory tariffs or approach the WTO while advocating for a strategic response.

“It makes sense to reconsider certain products for tariff adjustments to address US concerns,” remarked one expert who preferred to remain anonymous due to the sensitive nature of the issue. While tariffs are bound by WTO commitments or linked to MFN status rather than being country-specific, there is an opinion that a measured approach could be taken when evaluating the product list traded between India and the US.

India Takes Steps to Protect Itself from Potential Trump Tariffs“It is unfeasible for India to implement country-specific tariffs, as that would violate the most-favoured nation (MFN) principle,” stated Ajay Sahai, director general of the Federation of Indian Export Organisations (FIEO).

Tariff Review

Sahai believes that India can revisit certain tariff lines and strategize accordingly, even if it results in a slight duty loss on some products.

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Harley-Davidson Struggles with Proposed Tariffs from Trump

Here’s a brief overview of how tariffs operate in economics.

When a company imports a good or its component from a foreign country, let’s imagine it costs $20 prior to any tariffs. The company markets that item for $30 to consumers, achieving a modest profit.

However, if the country where the company is located imposes a 50% tariff on imports from the supplier country, the cost of that good rises to $30. To maintain profitability, the company is then compelled to charge consumers $40, thus transferring the added expense onto them.

The primary intention behind tariffs is not to penalize the exporting country but to encourage domestic production, prompting companies to source locally to avoid tariff costs. Nevertheless, if local alternatives are either unavailable or similarly priced, the burden of extra costs still falls on consumers, rather than the country from which the product was imported.

Moreover, tariffs can lead to adverse effects on global commerce, instigating countries to retaliate. For instance, if the U.S. imposes tariffs on imported goods, the UK may respond by imposing tariffs on American products, including notable brands like Harley-Davidson.

Harley-Davidson Struggles with Proposed Tariffs from Trump

As reported by Politico, this is not the first instance of the U.K. imposing tariffs on American products. The last time this occurred was during Trump’s presidency concerning American steel. “The U.K. has retaliatory tariffs on iconic U.S. goods including Harley Davidson motorbikes ready to be immediately deployed in case of a trade war with Donald Trump,” the publication notes, adding, “The British government has been strategizing how to counter potential Trump tariffs on U.K. goods, with officials briefing ministers that they can reinstate former EU measures against the U.S. without further inquiry. Following Brexit, the U.K. maintained tariffs that the EU had imposed on U.S. products as a response to Trump’s steel tariffs.”

This situation arises at a particularly difficult time in Harley-Davidson’s prolonged history. With domestic demand plummeting, the company has been intensifying efforts to penetrate European and Asian markets, with the U.K. emerging as a key market. They’ve worked diligently to engage potential customers in the area and have even sought to attract MotoGP fans through its dynamic King of the Baggers series, though it’s uncertain if these efforts will succeed.

However, all these initiatives could be rendered ineffective if Harley-Davidson bikes, already among the priciest motorcycles on the market, increase in price by 10% to 30% because of retaliatory tariffs from the UK and possibly from the EU. Picture a $30,000 motorcycle suddenly escalating to $50,000 due to these newly enforced tariffs, a situation that could unfold almost overnight.

Harley-Davidson Struggles with Proposed Tariffs from Trump Photo by: Harley-Davidson

Harley EICMA Announcement

“Current and former government officials told Politico that the U.K. can swiftly reintroduce these tariffs on the U.S. if Trump acts on his threats to impose 10 to 20 percent tariffs on all imports, without facing opposition from Britain’s trade regulators,” the article notes, adding, “This can proceed without the typical need for an investigation by the independent Trade Remedies Authority, as these tariffs were suspended indefinitely by the British government in 2022 rather than being fully removed.”

If you’re skeptical, Harley experienced the negative consequences of tariffs during Trump’s last presidency as well. And this issue extends beyond just the U.K. and the EU; if Asian nations decide to impose their own counter-tariffs on American goods, particularly Harley-Davidson products, the impact could be detrimental.

With plummeting demand, an aging customer base, and a lineup that seems targeted at Baby Boomers—who are no longer purchasing motorcycles at the same rates—Harley is teetering on the brink of failure. Its best strategy for attaining long-term financial health lies in penetrating markets where small-displacement bikes are prevalent. But if even their desirable small-displacement 350 and 440 motorcycles become 10% to 30% more expensive, the company may lose its competitive edge against manufacturers like CFMoto, Bajaj, QJ Motors, and other reasonably priced domestic brands.

When you factor in additional macroeconomic challenges currently affecting the entire industry—such as high interest rates, stagnant wages, increasing inventory, economic instability, and lower-than-expected demand—Harley-Davidson finds itself in a precarious position, facing a multitude of challenges.

In summary, if these tariffs take effect and other nations retaliate—which they almost certainly will—Harley-Davidson may be facing serious trouble.