Even as Milwaukee-based Harley-Davidson plans to move the production of some of its motorcycles abroad in order to avoid the ill effects of a trade war sparked by President Donald Trump’s unilateral use of tariffs, House Speaker Paul Ryan on Tuesday morning declined to call for congressional action to address the issue.
In a press conference, Ryan readily condemned the general concept of using tariffs to pressure foreign trading partners to adopt favorable trading practices, but he once again stopped short of saying that Congress should take up legislation to exercise oversight of the Trump administration’s protectionist trade policies. The president has invoked national security concerns to levy tariffs on steel and aluminum.
“I don’t think tariffs are the right way to go. I think tariffs are basically taxes. And what ends up happening is you get escalating tariffs, or escalating taxes,” said Ryan. “That’s why we want to lower those barriers. There are unfair trading practices, no two ways about it, by other countries. I think it’s in our interest to use other tools to go after those unfair trading practices.”
Ryan did not directly answer the question posed by Washington Post’s Mike DeBonis, who had asked whether Congress should reclaim its Article I trade authorities.
The Wisconsin Republican’s comments came amid rising tensions between the United States and its allies caused by Trump’s across-the-board tariffs of 25 percent and 10 percent on steel and aluminum imports. Those tariffs, employed under Section 232 of the Trade Expansion Act of 1962, have led America’s trading partners to pursue a number of retaliatory tariffs on select U.S. goods and products.
One such response measure—a 31 percent tariff slapped on Harley-Davidson motorcycles by the European Union last week—is already shaping the company’s decisions, frustrating Trump in the process. The company announced Monday that it would relocate the production of its motorcycles destined for EU markets in order to avoid the latest tariffs, which would increase the price of each motorcycle by more than $2,000.
“Expanding international production to alleviate the EU tariff burden is not our preference, but it’s the only sustainable option we have to make motorcycles available and affordable to EU customers,” the company’s spokesman Michael Pflughoeft said, according to the Wall Street Journal.
The move apparently hit close to home for Trump, who has tweeted about it six times since it was announced.
Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag. I fought hard for them and ultimately they will not pay tariffs selling into the E.U., which has hurt us badly on trade, down $151 Billion. Taxes just a Harley excuse – be patient! #MAGA
— Donald J. Trump (@realDonaldTrump) June 25, 2018
And early Tuesday morning, Trump incorrectly claimed that the company was simply using the EU’s tariffs as an excuse to export its manufacturing. He also predicted the decision would result in the company’s failure and threatened to target it for taxes in retaliation.
A Harley-Davidson should never be built in another country-never! Their employees and customers are already very angry at them. If they move, watch, it will be the beginning of the end – they surrendered, they quit! The Aura will be gone and they will be taxed like never before!
— Donald J. Trump (@realDonaldTrump) June 26, 2018
The White House did not respond to THE WEEKLY STANDARD’s request for comment about what “The Aura” is, nor did it offer an explanation as to why said aura would be lost.
