The ramifications of the Very Stable Genius's trade policy are underway

Better enjoy the economic uplift from tax reform while you can. A countervailing wind has begun to blow.

In a response to President Trump’s trade war with the European Union, an American icon, Harley Davidson motorcycles, will be moving some of their production facilities out of the United States.

The maker of the iconic American motorcycle said in a regulatory filing Monday that EU tariffs on its motorcycles exported from the U.S. jumped between 6 percent and 31 percent. The company said it expects the tariffs will result in an incremental cost of about $2,200 per average motorcycle exported from the U.S. to the EU.

“Harley-Davidson maintains a strong commitment to U.S.-based manufacturing which is valued by riders globally,” the company said in prepared remarks. “Increasing international production to alleviate the EU tariff burden is not the company’s preference, but represents the only sustainable option to make its motorcycles accessible to customers in the EU and maintain a viable business in Europe. Europe is a critical market for Harley-Davidson.”

Ruining the American economy and killing off American jobs to own the libs.

Sales for Harley-Davidson in Europe are second only to that in the U.S. Around 40,000 were sold in Europe last year.

With anticipated costs between $30 million to $45 million through the rest of the year, the company vows to absorb the hit and will not be raising its prices, in order to avoid damaging the momentum in sales they have in Europe. That should cover them until they can manage the move to Europe, estimated to take between 9 to 18 months.

Shares in Harley-Davidson slid 3 percent before Monday’s opening bell. They weren’t alone. Other companies that rely heavily on aluminum and steel also felt that gut-punch that comes from having a barely literate, stampy-footed reality TV host in charge of a nation’s well-being.

Making America 1930 again.

On Monday, the vice president of the European Union’s governing body said that Europe and China will form a group aimed at updating global trade rules to address technology policy, government subsidies and other emerging complaints in a bid to preserve support for international commerce.

European Commission Vice President Jyrki Katainen said unilateral action by U.S. President Donald Trump in disputes over steel, China’s technology policy and other issues highlighted the need to modernize the World Trade Organization to reflect developments in the world economy.

Trump and his devotees will continue to call this “winning.” It’s those Harley enthusiasts, however, that make up Trump’s base. When they do see Harley-Davidson moving from being a uniquely American commodity, who do they blame?

What about the pork and soy farmers that are already feeling the effects of an ill-advised trade war? 

What say you, Larry Kudlow?