Sputnik: How anticipated was Harley Davidson's move?
Nicola Borri: The decision by Harley Davidson surprised many, including President Trump. I think it's important to remember that one six of sales of Harley-Davidson are in Europe and clearly these motorbikes will not be competitive with the 25-percent tariffs imposed by Europe in retaliation to US tariffs on steel and aluminum.
READ MORE: EU Mulling Reciprocal Measures Against US Car Import Tariffs — Reports
Therefore, I think there was obvious choice to shift production overseas especially because Harley-Davidson already has plants overseas, like in India and Thailand.
Sputnik: What are the chances that other companies would also shift their production to Europe amid the increased tensions between the Western allies?
Nicola Borri: I think that the chances of this happening are pretty high because the tariffs that have been re-imposed are ill-equipped to make the US exports non-competitive in Europe.
READ MORE: US Republican Senator: Imposing Tariffs Mistake Due to Potential for Retaliation
So I think that some companies will shift production, maybe the bigger ones and the ones which have production sites abroad, as more will simply choose to keep from exporting to the EU altogether.
Sputnik: Europe vows retaliatory measures against US tariffs. But how likely is Europe to act as a united front against the US?
Nicola Borri: Actually, the EU is currently very divided on many issues, first of all immigration policy and the common financial architecture.
I think that President Trump is actually trying to take advantage on these divisions. However, for the time being at least, European countries were able to speak with one voice on trade issues and have been united in these retaliatory tariffs against the US tariffs on steel and aluminum.
The views and opinions expressed by Nicola Borri are those of the analyst and do not necessarily reflect those of Sputnik.
