Yesterday, Donald Trump, the President of the United States of America, lashed out at Harley-Davidson, the motorcycle manufacturer, for its decision to relocate the production out of the United States as the owner of Jack Daniel’s increased its prices in Europe in the most recent reaction to a heightening trade war.
Trump started a Twitter tirade against the company in which he also implied that tariffs on the car exports of the European Union are imminent, intensifying the fears regarding a further tariff escalation.
He stated: “We are finishing our study of Tariffs on cars from the EU in that they have long taken advantage of the US in the form of Trade Barriers and Tariffs. In the end it will all even out – and it won’t take very long!”
Trump threatened that Harley “will be taxed like never before.”
The iconic American brand sells itself as the “Freedom Machine.” It baulked at the retaliatory levies that were imposed by the European Union. This week, it announced that it will move its production outside the United States in order to minimise the damages.
Trump stated: “A Harley-Davidson should never be built in another country-never! Their employees and customers are already very angry at them.”
The manufacturer of Jack Daniel’s and other whiskeys, Brown-Forman, is set to increase the prices on a standard 700ml bottle by approximately 10 percent.
Some economists said that the moves of the manufacturers were considered to be logical, and cautioned that an escalation in the trade war would likely strike a vital blow against the economy of the United States.
Separate forecasts that were released by Deutsche Bank and Oxford Economics both point to a hit that ranges between 0.2 and 0.3 percentage points to the growth of the US in the coming year once it follows through with its plans that are aimed at China.
Next year, the total hit from the lost growth in the $19.96 trillion economy of the US could range between $39bn and $60bn once Trump continues with his plan to impose a levy 10 percent on another $200 billion worth of imports that are from China.
However, the US President has so far not backed down. He simultaneously pressured China, its economic rival, and staunch allies in Canada, Mexico, and the European Union.
Today, Philip Hammond, the British Chancellor, warned that the trade battles of Donald Trump could result in a global disaster.
Speaking to CNBC-TV18, an Indian news Channel, Hammond stated: “I very much hope that we can avoid a full-scale trade war [because] that would be a disaster for everyone, not least for the United States.”