CHICAGO (CBS) — Stocks suffered their worst day this month as fears of a trade war drove investments down. The Dow, NASDAQ, and S&P 500 were all down Monday.
The Dow Jones Industrials slid 328 points to 24,253 – its lowest close since early May. The NASDAQ fell 161 points to 7,532 and the S&P 500 Index lost 37 points to close at 2,717.READ MORE: Buckingham Fountain To Be Turned On Before Memorial Day After Sitting Dry For Over A Year Amid Pandemic
One casualty is an American industrial icon: Harley Davidson Motorcycles. As CBS 2’s Political Reporter Derrick Blakley reports, the Milwaukee motor company is doing something that was once unthinkable: shipping some production of its famous retro bikes overseas.
At Cycle Tech in suburban Summit, technicians work on all bikes, but freely acknowledge the aura of a Harley.
CBS 2’s Derrick Blakley reports the Harley brand is as American as mom and apple pie, which is partly why the Europeans made it a target for tariffs.
Harley’s responded by moving a big chunk of production to Europe.
Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag. I fought hard for them and ultimately they will not pay tariffs selling into the E.U., which has hurt us badly on trade, down $151 Billion. Taxes just a Harley excuse – be patient! #MAGAREAD MORE: Deaths Of Wild Swans Found Around Wolf Lake Blamed On Parasites
— Donald J. Trump (@realDonaldTrump) June 25, 2018
Grant Thornton Chief Economist Diane Swonk said, “They actually hope to make up for some of the weakness they’re seeing in the U.S. by selling these vehicles abroad, but they can’t do that if they’re getting a big tariff on them.”
It’s the latest reaction in a trade war touched off by President Trump when he slapped tariffs on foreign steel. The object was to protect American steelworkers, but not it will cost the jobs of American Harley workers who made the bikes that will now be made abroad.
“I liken a trade war to a bad divorce,” said Swonk, “really nobody wins. People start cutting off their nose to spite their face. You end up in a lose-lose situation.”
The White House said Monday afternoon, President Trump has no intention of backing down, despite the European tariffs.
“The European Union is attempting to punish U.S. workers with unfair and discriminatory trade policies,” stated White House Press Secretary Sarah Sanders. “President Trump will continue to push for free, fair, and reciprocal trade and hopes the EU will join us on that.”MORE NEWS: Firefighters Rescue Person Hanging From Window Of Burning Building In West Pullman
Ironically, Harley Davidson benefited mightily when the U.S. slapped tariffs on Japanese motorcycles back in the 1980s. Some credited that move with saving the company, leading to a big comeback in the 1990s when Harley sold bikes faster than it could make them.