For seven years now, the USA and Europe have been engaged in an intensified trade dispute that has led to punitive tariffs on both sides. Now there are first agreements, which could also have a positive effect on motorcycle manufacturers.

For seven years now, the USA and Europe have been engaged in an intensified trade dispute that has led to punitive tariffs on both sides. Now there are first agreements, which could also have a positive effect on motorcycle manufacturers.

 

Harley was threatened with drastic increase

As reported, Harley-Davidson switched production after the introduction of punitive tariffs in the EU. Harleys imported to Europe were no longer manufactured in America to avoid otherwise threatening punitive tariffs. However, the assigned Binding Origin Information (BOI) was recently revoked from Harley and it faced tariffs of 56 percent instead of the previous 6 percent, even if the motorcycles were produced in Thailand.

 

Breakthrough in trade dispute

As has now been confirmed, however, there is now a breakthrough in the trade dispute and an agreement. Both sides want to suspend punitive tariffs as long as the agreed conditions are met. Currently, however, this is about aircraft.

 

U.S. Trade Representative Katherine Tai: “Today’s announcement resolves a long-standing trade irritant in the U.S.-EU relationship… We have also with the EU agreed to clear statements on acceptable support for large civil aircraft producers and a cooperative process to address that support between our two parties.”

 

Ursula von der Leyen, President of the European Commission, said, “This meeting has started with a breakthrough on aircraft. This really opens a new chapter in our relationship because we move from litigation to cooperation on aircraft – after 17 years of dispute.”

 

The extent to which this will affect other areas is not yet clear. But chances are good that motorcycle manufacturers could also be exempt from punitive tariffs.

 

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