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AMA In Opposition Of Tariff

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Old 03-26-2002, 09:25 AM
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Trade Wars

The AMA has strongly denounced a proposal by the European Union to slap Harley-Davidson motorcycles with a stiff tariff in a trade war with the United States over steel, according to a release issued by the AMA.

To retaliate against tariffs recently placed on imported steel by the United States, Pascal Lamy, trade commissioner of the 15-nation European Union, is assembling a list of American goods that could be subject to heavy European tariffs. The list includes Harley-Davidson motorcycles, Tropicana orange juice, textiles and steel products.

If the proposal is approved by the European Union, Harleys could be hit with the tariff in about a year.

"There is no reason for motorcycles to be caught up in this trade war," said Edward Moreland, AMA vice president for government relations. "Tariffs would not only be detrimental to the Harley-Davidson Motor Company, but could make Harleys too expensive for European enthusiasts.

"Harley-Davidson is being made a pawn in a high-stakes international chess match," Moreland added.

The AMA plans to work with European motorcycling groups to convince the European Union to drop the idea of tariffs on Harleys. This isn't the first time that motorcycles have been caught up in a trade war between the United States and Europe. Several years ago U.S. trade officials threatened to impose a 100 percent import duty on certain European motorcycles sold in the United States, which would have essentially doubled their price.

Those import duties were being proposed in retaliation for the European Union's ban on the importation of hormone-treated American beef. U.S. officials drew up a list of products that would be subject to a 100 percent import duty, including European motorcycles ranging from 51cc to 500cc in engine displacement.

Thanks to the efforts of the AMA, its members and the motorcycle industry, U.S. trade officials decided against imposing the 100 percent import duty on the European motorcycles, according to the AMA.
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Old 03-27-2002, 06:39 PM
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Seems like this could be a little pay back to Harley for when they fought for and got a import tariff against the jap bikes several years back.Looks like what goes around comes around.

Just my .02cents
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Old 03-29-2002, 06:31 AM
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Ok I'm confussed.........So does that mean that Harley's are going to be over priced. The Dallas market is second to LA in mark-up. A new v-rod here in big "D" will set you back about 22k. Now if you ask me, that's a bunch of bullshit.

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Old 03-29-2002, 05:31 PM
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Hey Brian ,this tariff is only going to effect the export market on HD's and should have no effect on the domestic market. At least that is the way I see it. And as for the price of a v:rod being 22k for a bike listed msrp at 16k this looks like it would be reason enough for me not to buy one of them ugly things any way.
Just my .02
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Old 03-30-2002, 06:03 AM
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Look's to me like plain old "Politics" on the international level.
Harley does sell bikes overseas and are selling more overseas than ever before. And I agree it's probably in retaliation to H-D's past push for the USA to apply the import tax to import bikes not just the Japanese bikes, but European bikes as well. But the people overseas that are buying Harleys are the wealthy , and they will probably still buy them.
Here in the states H-D sticks you with what they call a "shipping charge" usually around $500 , I wonder what they charge the Europeans for shipping ??? $5000. I'm sure the bikes going overseas are way overpriced to begin with. H-D may have to cut back on the built in "screw you" charges like the "shipping" & "set-up" fees , or lower the prices back to MSRP to keep the sells up overseas if the tariff tax is applied.
As for buying a "new" Harley here in the states, you can buy a Harley at MSRP , you just have to shop around. It's best to stay away from the "big city" dealers. If you check there are small town dealers selling at or just above MSRP.

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