Harley-Davidson 2018: Trump, Tariffs, and the Future
In June 2018, Harley-Davidson, Inc. (NYSE: HOG), the iconic American manufacturer of motorcycles—hogs as they were affectionately referred to—announced that it would shift some United States-based production to a foreign country. Harley explained it had little choice if it was to remain competitive in foreign markets, specifically, Europe. The European Union (EU) had, the previous month, announced an increase in the import duty imposed on Harley-Davidson motorcycles manufactured in the U.S. in retaliation for President Donald Trump’s imposition of increased tariffs on European steel and aluminum. But Harley’s problems went much deeper than simply European import duties. Harley was suffering from a decade-long slump in sales and profitability. Would shifting production out of the U.S. be the appropriate solution?
the trade policy strategies utilized by states and the multifaceted effects that tariffs can have on
companies. This case is recommended for master’s students or upper-level undergraduates and
should cover a 75-to-90-minute class.