Posted on 03/31/2016 5:19:29 AM PDT by Hojczyk
U.S. RAISES TARIFF FOR MOTORCYCLES By CLYDE H. FARNSWORTH, Special to the New York Times Published: April 2, 1983 WASHINGTON, April 1 In an unusually strong protectionist action, President Reagan today ordered a tenfold increase in tariffs for imported heavyweight motorycles.
The impact of Mr. Reagan's action, which followed the unanimous recommendation of his trade advisers, is effectively limited to Japanese manufacturers, which dominate every sector of the American motorycycle market.
The action was exceptional for protecting a single American company, the Harley-Davidson Motor Company of Milwaukee, the sole surviving American maker of motorcycles.
The only comparable trade action by this Administration, the President's decision last May to impose quotas on sugar imports for the first time since 1974, was aimed at an entire industry.
''We're delighted,'' said Vaughn L. Beals, Harley-Davidson's chairman. ''It will give us time that we might otherwise not have had to make manufacturing improvements and bring out new products.''
But it brought angry reaction today from Japanese officials and a threat to file unfair-trade charges against the United States in Geneva.
''We consider it unfortunate that the American side decided to take this kind of drastic measure,'' said Hiroshi Ota, counselor for public affairs at the Japanese Embassy here. He added that Japan was considering taking a formal protest of the action to the General Agreement on Tariffs and Trade.
The action, which becomes effective in 15 days, affects large highway motorcycles with an engine displacement of more than 700 cubic inches,the only market in which Harley-Davidson now manufactures. It would raise the current tariff of 4.4 percent to 49.4 percent in the first year of the five-year program.
(Excerpt) Read more at nytimes.com ...
It really didn’t work. Jap bikes were better then and they still are. Harleys quality has improved over the years however.
“Reagan was a LIBERAL Democrat just like Trump!” /Ben Shapiro & the Cruzers
Do you confine your support for candidates only to those you agree with 100.000%??
But we were told by the GOPe that tariffs are unworkable and will destroy the economy.
Even though India has close to if not THE highest motorcycle usage in the world, I note that Japan doesn't seem to have a problem with their tariffs: 104% on all imported motorcycles.
That tariff saved Harley Davidson AND gave us almost 30 years of Honda Gold Wings manufactured in Ohio. MANUFACTURED not a just assembled. in 2008, I read a column in one of the motorcycle trade magazines (Dealer News, I think) that stated the Gold Wing had 96& American sourced contentment as opposed to HD 93%.
But alas, Honda moved the Gold Wing manufacturing back to Japan in 2010.
Free Trade and Nickel Beer.
A rare bad move by Reagan - shortsighted and ineffective. He sure didn’t have many though.
contentment = Content
Dammit!!! Auto Correct!
We also have the surrent example of the current 25% tariff on imported pickup trucks.
didn;t work for who? Look at this chart:
https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=nyse%20hog
The only time its been bad is when the union strike nearly undid all the good work in 2007-2008.
Looks pretty win win to me. Unless you think Japan had a right to own the U.S. motorcycle market. Think of the social costs we’d be absorbing (including me who doesn’t give a rip about motorcycles) if this company didn’t exist.
It really didnt work. Jap bikes were better then and they still are. Harleys quality has improved over the years however.
...............................................................
Baloney! Harley SURVIVED and is STILL in business. I’d rather ride a Harley any day if I was still riding. Even Spanish bikes were better than Jap bikes back then.
Tariffs are nothing more than a scheme to transfer wealth from consumers to manufacturers. Tariffs allow some manufacturers to raise the price of their products. The increased price must be paid by those who use the products. Wealth transfer through the power of the state.
I think HD basically had to start all over after AMF was done with it.
Bike quality aside. Before Ronnie’s action there were NOT nearly as many Harley’s on the road. Then the quality got better and they were everywhere. Especially from 90 thru 05 when every middle aged male seemed to need one. So Ronnie may not be 100% responsible for their growth but he sure didn’t hurt it.
Trade tariffs in a last ditch effort to save an industry makes sense. It lowers economic output and increases cost at the price of keeping a business locally.
Not to be done lightly but if you don’t want to deindustrialization, you’ll need to do it in some areas at some times.
You mean Harley went out of business?
Quick, call Scott Walker!
There is a lot more to this story most of which I don't know but have hints about.
AMF almost destroyed the company but Harley had a huge following as soon as the original owners got back in charge.
I believe that Harley told the government it didn't need the tariff anymore before it expired.
Why don't we do that?
We could rebuild a huge automobile manufacturing sector by banning the import of any foreign made automobiles?
Why don't we do that?
We could rebuild a huge cellphone manufacturing sector by banning the import of iPhones and Android phones and the like.
Why don't we do that?
Someone should ask Trump these questions. I would certainly listen carefully to his answers.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.