If you believe that what happens on the other side of the World doesn’t affect you and your choices, you might be sorely mistaken. And proof of that comes in the shape of what is now known as the Trade War between the United States and European Union.
In case you managed to miss all the news about this, United States president Donald Trump decided to announce a plan to impose tariffs on steel and aluminium imported into the United States. Trump said he wanted to impose an extra 25% import duties on steel and 10% on aluminium, and as a response to this intention, the European Union says that it will impose more taxes on American products, targeting Harley-Davidson as well as other brands. A Trade War in all its glory.
Obviously, you might think that this isn’t a problem in South East Asia, after all this Trade War is happening on the other side of the World between USA and the EU.
But the fact is that this announcement by Donald Trump might actually drive up the prices of Harley-Davidson motorcycles sold everywhere, including in South East Asia.
The Motor Company fabricates most of its line up in the Milwaukee factory, and uses a lot of steel and aluminium in the process. So, having to pay an extra 10 to 25% for raw imported materials will increase production costs, and things won’t look any better even if Harley-Davidson chooses to source the same materials from within the United States trying to bypass the import duties, because the American-made premium steel and aluminium is way more expensive than the imported ones.
Up until now, Harley-Davidson has been quiet about this.
But, according to the Milwaukee Journal Sentinel, the American brand known all over the World as an epitome of the American way of life, has had enough and decided to speak about the Trade War: “Import tariffs on steel and aluminium will drive up costs for all products made with these raw materials, regardless of their origin,” said Harley-Davidson in a statement released today. “Additionally, a punitive, retaliatory tariff on Harley-Davidson motorcycles in any market would have a significant impact on our sales, our dealers, their suppliers and our customers in those markets”.
Other American brands like Indian Motorcycles will also be affected by this rise in steel and aluminium prices due to the Trade War, so now it’s a matter of wait and see if Donald Trump backs down on his intention.
We still haven’t got an official statement from Didi Resources Sdn Bhd, the new Harley-Davidson importer and distributor in Malaysia, about how this Trade War can affect prices, but we’re hoping to get some more info as soon as possible. We will update this content when we get more details.