Author Topic: Royal Enfield responds to the proposed tariff war  (Read 2950 times)

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Richard230

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on: March 10, 2018, 10:50:48 pm
I think RE is keeping their fingers crossed that Trump won't put them back on his tariff radar.  Their response is at the end of this blog:  https://www.revzilla.com/common-tread/motorcycle-manufacturers-worried-about-trade-war-rhetoric
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Arizoni

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Reply #1 on: March 11, 2018, 07:15:18 pm
Well, they seem to be speaking of the steel/aluminum tariff.
The amount of steel and aluminum in a motorcycle isn't much so the impact of this tariff should be small.

What Royal Enfield needs to fear is their governments response to Trumps desire to level the playing field on import taxes.
If we are going to play on a level playing field, India and many other countries will have to reduce or eliminate the duties they charge on imports from us.

India has a complex system for figuring out what the import duty is on things but when all is said and done it can be over 75% on goods imported from the USA.  (Some agricultural produce can be as high as 300%).
The USA has no duty's on things imported from India.

While the "no or very little duty on imports" the USA has is good for the people who want to buy foreign things, the high foreign duty on imports from us makes our producers noncompetitive on their markets.
That leads to companies in the USA shutting down and a trade deficit of billions of dollars. 

 
 
Jim
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Richard230

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Reply #2 on: March 11, 2018, 09:49:41 pm
One thing I wonder about trade wars is who gets to keep the tariff money and who ends up paying it?  ::)  I get this feeling that a tariff is just another form of government taxation, which is paid by the consumer as a "stealth" tax.  :o Great for the government not so great for the country's population.   :(  I think the world should have no tariffs at all and let the marketplace determine who wins and looses.  You would think that would encourage manufacturing and production efficiency eventually.  ???  But of course, no one likes a level playing field, especially if you think you can win at playing the game.  ;)
2018 16.6 kWh Zero S, 2009 BMW F650GS, 2020 KTM Duke 390, 2002 Yamaha FZ1