Lots of folks are getting revved up over the issue of tariffs – and one analyst says what President Trump has done in that regard really runs counter to all he's accomplished in the economy.
Harley Davidson stated this week that it will shift some of its production overseas as a way of avoiding recently announced tariffs from the European Union on various U.S. goods including motorcycles. The EU's tariffs are in retaliation for the Trump administration's tariffs on steel and aluminum.
"They send Mercedes and BMWs [and] we tax them practically nothing," the president told supporters at a rally this week in South Carolina, home to Boeing and BMW plants. "We can't send our cars – and if we do, they charge many, many times the tax that we stupidly don't charge. So I told them: Here's what we're going to do: We're going to charge a tariff on steel until such time as you straighten out your act."
Tori Whiting of The Heritage Foundation thinks the way the administration is going with its trade policy is really counter to the rest of its economic policy, which she describes as incredibly pro-growth and has really prioritized making America a great place to do business.
"Their trade policies don't help America become a great place to do business because it not only puts additional costs on businesses that operate here in the United States that either want to import parts or semi-finished goods, but it also is causing problems for the markets of those goods that they do make here in the United States," she explains.
"So that's part of the reason why you see Harley-Davidson making the decisions that they did to move part of their production to the market where they actually want to sell that product."
Still, the president has tweeted that Harley is using this as an excuse to move production overseas, adding the company announced early this year that it planned to move production from Kansas City to Thailand. The president went on to say that no Harley should ever be built outside the United States, warning the company will pay heavily for something he says "has upset customers and employees."