It’s not just about Harleys..

Harley article credited to Sky News …

One of our Directors Nick Cruz is a fan of the Harley so this news of Trump’s dive into tariffs may be of personal interest. …

Harley Davidson said it would move some production of its motorcycles that are destined for the European Union overseas after Brussels retaliated for President Donald Trump’s tariffs. “To address the substantial cost of this tariff burden long-term, Harley-Davidson will be implementing a plan to shift production of motorcycles for EU destinations from the U.S. to its international facilities to avoid the tariff burden,” the company said in a regulatory filing. “Harley-Davidson expects ramping-up production in international plants will require incremental investment and could take at least 9 to 18 months to be fully complete.”

It will not pass on the cost of tariffs to its customers as that would have a lasting detrimental impact to its business in the region, its second biggest market, the company said. Production could be shifted to its plants in Brazil, India and Thailand. Brussels imposed tariffs on a range of US-made products, including cosmetics, whiskey and cranberry juice. The levy on Harley-Davidson bikes has increased to 31% from 6%, the Milwaukee-based company said. It believes that cost to be about $2,200 per bike it exports from the US to the EU.

So the EU has now decided to up the ante against the US and the to and fro of tariff bidding is becoming a small war. Add also yesterday’s non-meeting that became a huge story following Italy’s PM and his plan on immigration going forward that caught Frau Merkel’s attention PDQ there is a storm brewing and it is entering around the EU.

In terms of Gibraltar our Government continues a fairly amicable relationship with the US, not that we are a great importer of Harley’s though we do have a club. The story for us is more to do with the EU. Fighting already with the UK over ensuing brexit especially in terms of the Irish border which will have interesting repercussions for Gibraltar as we are similarly positioned, notwithstanding the Spanish “veto”. This from today’s Chronicle is an example of that little gem.

Spain wants an agreement for joint use of the airport that respects each party’s red lines on the issue, Spanish Foreign Minister Alfonso Dastis said yesterday in an interview with Reuters. Mr Dastis said Spain hoped to reach an agreement with the UK on Gibraltar by October, repeating earlier statements that Madrid did not want this issue to derail the wider Brexit process. “We have tried to reach an agreement for joint use [of the airport] on two occasions, once in 1987 which was not accepted by the British part, and once in 2006, which ultimately we did not accept*,” he said. “It seems to us a good idea to make a third attempt – you could apply the saying ‘third time lucky’ – and for that joint use to be possible [while each side] maintains their claims [and] without that joint use affecting each party’s position.”

*Actually the second agreement was actually agreed by Spain (Cordoba Agreement) but the change of government in 2011 under Rajoy with Margallo as Foreign Minister quickly pulled that particular rug from under the UK/Gibraltar’s feet. It is why if you tour the Gibraltar Airport behind the scenes there is part of the building near the border fence with an escalator that goes up to a dead end as the Spanish never built their agreed building to connect to ours.

Have a great week and do follow us on twitter at @AcquariusTrustG