Get all your news in one place.
100's of premium titles.
One app.
Start reading
RideApart
RideApart
Sport

Harley-Davidson Can't Afford Trump's Proposed Tariffs

As a quick economics refresher, here's how tariffs work. 

A company imports either a product or part of a product from a country that isn't where they're based. They cost, let's say, $20 before tariffs. The company then sells that product for $30 to the consumer, netting themselves a small profit.

But if the country the company resides in imposes tariffs on those goods from the country it imports it from, say, 50%, that good then costs the company $30 to import. To make a profit, that company then will have to sell that good to you for $40, passing on that cost to the consumer. 

The idea of a tariff isn't to make the country the company imports that good or part from pay, but to make the company look within the country it resides in to make the same good or part so they don't have to pay the tariffs. But again, if you can't or the price of the same good within your home country costs just as much as the one with the tariff imposed, those additional costs are passed along to the consumer, not to the country of the part or good the company imports it from. 

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.