Trump Says “Tariffs Are The Greatest!” Just As Harley-Davidson Blames Tariffs For Hurting Business

The President has doubled down on tariffs, just as Harley Davidson blames the tariffs for worsening business. Here’s the details…

There are a lot of growing pains with this whole Trade War and the concept of Tariffs.

The President is doubling down on tariffs today:

There does not seem to be a quick end or easy finish in sight.

To the contrary, it appears things are just ramping up.

Be sure to check out all of our ongoing coverage on tariffs, trade wars and currency wars to stay up-to-date on the latest developments.

Speaking of developments, we have been covering Harley-Davidson from time to time over the last year.

What initially sparked the interest was incoming data showing that Harley-Davidson, the iconic American motorcycle manufacturer, could be put on the retail apocalypse watch. In that article, we noted several early warning signs for Harlley-Davidson. the main one being Harley-Davidson was having a hard time competing overseas with competitors’ motorcycles that sold for significantly less.

In that article, we speculated that if there was to be a trade war, that Harley-Davidson could become a casualty.

After rallying throughout 2016, the company has been struggling for a couple of years now, just as the President has embarked on the MAGA campaign (which includes trade wars, currency wars and tariffs):

Fast forward to the compnay’s just released Q2 earnings report, and it looks like things are getting worse for Harley-Davidson (from ZH):

More troubling was the news that 2Q motorcycle shipments of 72,593 declined 11.3% in the quarter.

But the big problem, and what will likely provoke Trump’s fury, is that HOG said its operating margin would drop to between 9 and 10% in 2018; the reason? Tariffs, to wit:

Motorcycles segment operating margin as a percent of revenue to be approximately 9 to 10 percent given the expected impact of tariffs in 2018

Previously, the company had been projecting a margin of as much as 10.5%.

This is just the beginning of the casualties.

Remember, most of the tariffs have just now kicked-in, and many more are coming down the pike.

It may seem like tariffs have been front and center all year long, and while they have, they haven’t been in force until just recently.

Finally, we analyzed the last time steel tariffs were enacted under President (GW) Bush, and while we recognize that “past performance is not indicative of future results”, it was interesting to note that gold and silver performed very well during those times of tariffs.

Bottom line: Tariffs are just one of the weapons used in this escalating trade war and currency war.

Stack accordingly…

– Half Dollar


 

About the Author

U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at PaulEberhart.com. Paul’s Twitter is @Paul_Eberhart.

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