Trump is surprised that Harley Davidson acted rationally. Its purpose is to maximise profits, not fight an unnecessary war that Trump has going on inside his head. He seems to think what he is doing is patriotic, but it is more like self-harming behaviour than anything else.
"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 EU, which has hurt us badly on trade, down $151billion. Taxes just a Harley excuse - be patient!"
Trade wars are complicated and damaging. Silly policy when the system wasn't broken in the first place.
Of course, Trump imagines that he can have happen what he hopes will happen. But economics works the way it works. He can discuss reordering the deck chairs, but it's always the same boat.
In trade terms, the US isn't the global superpower it is in military terms. The EU is a bigger marketplace. China is a similar size. Others will take advantage of US missteps, leaving the US worse off.
The biggest long term imprint of Trump's policies is that its allies and trading partners will no longer trust the US. So I expect a free trade Commonwealth bloc to emerge independent of the US, including India, the UK, Australia, Canada, Singapore etc. And I expect the European powers to rearm and that may not end well.
What a shame to see the US throw everything away.
| 