• Contact Us
  • Terms & Conditions
Saturday, January 28, 2023
No Result
View All Result
Motorcycle Nerd
  • Top Roads
  • Reviews
  • Tips
  • Blog
  • Still Alive Podcast
YouTube
Motorcycle Nerd
  • Top Roads
  • Reviews
  • Tips
  • Blog
  • Still Alive Podcast
YouTube
Motorcycle Nerd

Tariff Retaliations and the Motorcycle Industry: How we could be exporting jobs & losing profits.

Mike Gitkos by Mike Gitkos
July 7, 2022
in Blog
0

I’m going to do everything I can to leave out the headline selling presidential name that gets used a little to often these days. However, I will be very clear that no matter what side of the political spectrum you support your iron-made motorcycle will likely get caught in the middle.

The Problem

    Actually I could write a 9-page article about all the problems related with tariff increases and sh!t that is going to get stirred up if / when they all actually hit the table. This being a motorcycle website, I’ll keep it entirely based around that. If for example you are “America First” and want all of your motorcycle products built right here at home, keeping jobs right here, fantastic. Using steel out of your own back yard might lead to more job creation, and keeping motorcycles American made might be the way to go. Or is it?

    Let’s look at an American company like Harley Davidson. Harley sells the brunt of its motorcycles to the American market, close to 150,000 in 2017 alone. Great, they areincredibly well marketed, they deserve it. Yet, they also sold around 40,000 to the European market in that same year. This being their 2nd largest market world-wide. So now what happens when the USA slaps tariffs on European made products in an effort to get people to buy locally? Well they are likely to bite-back on American made products like luxury items. No matter how much you don’t think you could live without your Harley, it is in fact a luxury item and not the necessity you might feel it is.

Tax The E.U., Who Cares

    If the U.S. is going to slap taxes on the E.U. and the E.U. is going to bite back, then here lies a pending problem. Companies like Harley are not going to want to lose a competitive edge to bikes locally designed in E.U., like BWM. In a effort to stay competitive they are more likely to eat the costs of the taxes that then chews right into their bottom line.

The previous tax of %6 imposed on Harley will then explode to %31. In the short run Harley absorbs the %25 difference, or an estimated 100-million dollars. This will take money right out of investor pockets who will then be looking at ways to save money. Two extremely probably scenarios to make up the difference will be to streamline operations via layoffs on the USA production side of things. Or a long-term and irreversible possibility that they move a portion of the manufacturing process to Europe and other international plants.

The Big Picture

    No matter what brand of motorcycle you support or what political party you’re behind you are likely going to feel the tariff effects. All motorcycles are made up from a large portion of steel and plastics that are derived from overseas and at home. Naturally the more parts that are manufactured out of country where labour is considerably cheaper, the easier it will be to keep selling costs low at home. A real game changer, it could mean a global reconsideration of what out of country manufacturing, imports and overseas sales look like. “America First”, might becoming right of your backyard or even out of your back pocket.

ShareTweetShare
Mike Gitkos

Mike Gitkos

Hi! I'm Mike Gitkos, and I obtained The Motorcycle Nerd brand in 2022 because of my love of motorcycles, gaming, and tech/gadgets. I started riding in around 2010 with a Kawasaki Ninja 250 (who didn't) followed by a Honda Shadow Sabre 1100, and I'm looking to switch to an Adventure Bike next, preferably the Yamaha Tracer 9 GT.

My content here and on YouTube will revolve around the things I love in tech, gaming, and with motorcycles.

Next Post
honda cub and monkey

Honda: The Cub & The Monkey Are Back!

Follow Us

  • 69.1k Subscribers
  • 3.8k Followers
  • Trending
  • Comments
  • Latest
best adventure bike

The Best 9 Adventure Bikes for Riders of All Levels

July 7, 2022
most expensive motorcycle in the world

6 most expensive bikes in the world for impulse buying millionaires

July 7, 2022
best florida motorcycle roads

The 5 Best Motorcycle Roads in Florida

July 7, 2022
motorcyles in street pennsylvania

5 Best Roads to Ride in Pennsylvania

July 7, 2022
2018 Bmw R1200gs Rallye motorcycle

Must Have Gadgets for the 2018 BMW R1200gs Rallye

0
motorcyle stop in tennessee

A Motorcycle tour through the Volunteer State of Tennessee

0
viking on motorcycle

3 Motorcycle New Year’s Resolutions

0
burn out motorcycle

3 Reasons to Break-In Motorcycle Tires

0

Up, down, and Around the World. Charley & Ewan will only have sideways left to go.

July 7, 2022
motorcyle stop in tennessee

A Motorcycle tour through the Volunteer State of Tennessee

July 7, 2022
black triumph thruxton motorcycle

Café Racers. Sex Appeal For The Original Starbucksers’.

July 7, 2022
motorcycle with baby carseat

Does Having a Baby Mean Selling Your Bike?

July 7, 2022

Categories

  • Best Roads
  • Blog
  • Reviews
  • Tips & Tricks
Motorcycle Nerd

MotorcycleNerd is a blog and YouTube channel about tech, gaming, and motorcycle gear

Instagram

  • Moab, UT
.
.
Follow 👉 @motorcyclenerd
〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️
#roundtheworld #motorcyclenerd #spiritofGS #makelifearide
#bmwmotorrad #motoryclediaries #lonerider #bmwadventureriders #advrider #solotravel #travelblog #adventuretravel #camping #motocamping #r1250gs #r1250gsa
  • Moab, UT
  • BMW sold 81,000 GS/GSAs worldwide last year. Best motorcycle ever made.
.
.
.
Follow 👉 @motorcyclenerd
〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️
#roundtheworld #motorcyclenerd #spiritofGS #makelifearide
#bmwmotorrad #motoryclediaries #lonerider #bmwadventureriders #advrider #solotravel #travelblog #adventuretravel #camping #motocamping #r1250gs #r1250gsa
  • Winter in Yosemite
.
.
.
Follow 👉 @motorcyclenerd
〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️
#roundtheworld #motorcyclenerd #spiritofGS #makelifearide
#bmwmotorrad #motoryclediaries #lonerider #bmwadventureriders #advrider #solotravel #travelblog #adventuretravel #camping #motocamping #r1250gs #r1250gsa
  • Charley and Ewan are getting the old gang back together. Read more on our blog.
.
.
.
Follow 👉 @motorcyclenerd
〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️
#longwayup #longwayround #longwaydown #roundtheworld #motorcyclenerd #spiritofGS #makelifearide
#bmwmotorrad #motoryclediaries #lonerider #bmwadventureriders #advrider #solotravel #travelblog #adventuretravel #camping #motocamping #r1250gs #r1250gsa
  • #r1250gsexclusive
.
.
Follow Now 👉 @motorcyclenerd
〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️
#roundtheworld #motorcyclenerd #spiritofGS #makelifearide
#bmwmotorrad #motoryclediaries #lonerider #bmwadventureriders #advrider #solotravel #travelblog #adventuretravel #camping #motocamping #r1250gs #r1250gsa
  • R1200GS dragging pegs and sliding out of a corner
.
.
Follow Now 👉 @motorcyclenerd
〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️
#roundtheworld #bmwf800gs #spiritofGS #makelifearide
#bmwmotorrad #motoryclediaries #bridgestonemoto #arai #formaboots #formabootsusa #lonerider #guglatech #outbackmotortek #tfxsuspension #akademiaenduro #bmwadventureriders #adventurebikerider #advrider #adventure #roadtrip #overland #solotravel #travelblog #adventuretravel #camping
  • Know the author? Tag in comments.
.
.
.
Follow 👉 @motorcyclenerd
〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️
#roundtheworld #bmwf800gs #spiritofGS #makelifearide
#bmwmotorrad #motoryclediaries #bridgestonemoto #arai #formaboots #formabootsusa #lonerider #guglatech #outbackmotortek #tfxsuspension #akademiaenduro #bmwadventureriders #adventurebikerider #advrider #adventure #roadtrip #overland #solotravel #travelblog #adventuretravel #camping
  • R1200GSA in the desert
.
.
.
Follow Now 👉 @motorcyclenerd
〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️
#roundtheworld #bmwf800gs #spiritofGS #makelifearide
#bmwmotorrad #motoryclediaries #bridgestonemoto #arai #formaboots #formabootsusa #lonerider #guglatech #outbackmotortek #tfxsuspension #akademiaenduro #bmwadventureriders #adventurebikerider #advrider #adventure #roadtrip #overland #solotravel #travelblog #adventuretravel #camping

Recent News

Up, down, and Around the World. Charley & Ewan will only have sideways left to go.

July 7, 2022
motorcyle stop in tennessee

A Motorcycle tour through the Volunteer State of Tennessee

July 7, 2022
Currently Playing

Designing my channel logo with Midjourney AI: A fun & creative adventure!

Designing my channel logo with Midjourney AI: A fun & creative adventure!

00:30:44

© 2022 MotorycleNerd.com

No Result
View All Result
  • Top Roads
  • Reviews
  • Tips
  • Blog
  • Still Alive Podcast

© 2022 MotorycleNerd.com

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
https://motorcyclenerd.com/wp-content/cache/breeze-minification/js/breeze_a257602e9cb1e23f73bf882c415486b2.js