Trump criticized Harley-Davidson, but his steel tariffs had already prompted layoffs


On Monday evening, after the Dow Jones Industrial Average closed down more than 300 points as the market digested the fallout from President Trump's growing trade wars, Trump tweeted that he was "surprised that Harley-Davidson, of all companies, would be the first to wave the white flag" by moving production of its iconic motorcycles offshore to avoid paying the European Union's retaliatory tariffs. The EU, Harley's No. 2 market, slapped tariffs on motorcycles, orange juice, bourbon, and other politically sensitive goods after Trump levied steep tariffs on imported aluminum and steel.
"If Trump's trade policies are leading an iconic company like Harley-Davidson to move production out of the United States, then who exactly is benefiting?" asked Edward Alden, a senior fellow at the Council on Foreign Relations. "This will pose a real challenge to the president's core claim that his policies will lead companies to build more things in the U.S."
But Harley isn't the first U.S. company reacting negatively to Trump's tariffs — on June 15, the last major U.S. nail manufacturer, Missouri's Mid-Continent Nail Corp., cut 60 contract jobs, warning that 200 more layoffs could come by the end of July, and without an import tariff exemption, the entire company could be out of business by Labor Day. There will be winners as well as losers if the trade war escalates, The Washington Post notes — the Tax Foundation predicts that 48,585 American jobs will be lost under the tariffs Trump has already enacted, and more than 250,000 jobs could vanish if he follows through on his China threats. But his steel tariffs have encouraged U.S. steel and aluminum plants to restart production, salvaging hundreds of well-paying jobs.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Magazine solutions - April 4, 2025
Feature Issue - April 4, 2025
By The Week Staff Published
-
Magazine printables - April 4, 2025
Feature Issue - April 4, 2025
By The Week Staff Published
-
What dangers does the leaked Signal chat expose the US to?
TODAY'S BIG QUESTION The White House's ballooning group chat scandal offered a masterclass in what not to say when prying eyes might be watching
By Rafi Schwartz, The Week US Published
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
By Justin Klawans, The Week US Published
-
Why are stocks in 'correction' and not a bear market?
Today's Big Question Investors still hope for a 'flip' in Trump's trade policies
By Joel Mathis, The Week US Published
-
Trump's tariffs: is EU's retaliation the best move?
Today's Big Question Global US levy on steel and aluminium imports has the EU hitting back but the UK keeping options open
By Harriet Marsden, The Week UK Published
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
By Peter Weber, The Week US Published
-
What are reciprocal tariffs and how do they work?
The Explainer And will they fix America's trade deficit?
By Joel Mathis, The Week US Published
-
Trade wars, explained
The Explainer Free trade is almost always good for any economy – so why is it so unpopular?
By The Week UK Published
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
By Peter Weber, The Week US Published
-
Pros and cons of tariffs
Pros and Cons As Trump imposes tariffs on cars from overseas, here are the arguments for and against duties
By The Week UK Last updated