OPINION
On all levels — local, national, and worldwide — tariffs seem to be the topic of conversations. And I cite you an example of how tariffs do work and can help. And also, how major corporations in our country, nationally and locally, totally misunderstand who their target audience and their target customer is.
Take you back in time.
In 1983 President Ronald Reagan intervened to protect Harley Davidson by imposing tariffs on imported motorcycles principally from Japanese manufacturers.
Harley Davidson the corporation had fallen into the hands of AMF, the bowling company. AMF was systemically destroying a product that began in 1912 in this country, had a great reputation, and people bought the bikes. In the early 1980s Harley Davidson was facing significant financial difficulties due to the Japanese manufacturers who were dumping, another term could be flooding, the U.S. market with cheaper motorcycles. You could indeed buy a large Japanese motorcycle cheaper in Denver, Colorado, than you could in Japan. They were in essence bayoneting the wounded.
The United States trade commission concluded that the Japanese motorcycles were harming domestic industry and recommended protective measures. Ronald Reagan, not Donald Trump, agreed to impose a tariff on big motorcycles imported from Japan. Anything over 700 ccs. Now watch this.
He raised the tariff from 4.4 percent to 49.4 percent. The tariff was designed to provide relief for Harley to get back on its feet and reverse the decline. Harley returns, regains market share, and the company invested in improvements and innovation. They also used the time to retune their factories, introduce new engines, and develop new technologies. Ronald Reagan protected this iconic corporation from foreign interests.
Would Harley Davidson be here today if Ronald Reagan hadn’t stepped in? I really don’t think so. Reagan saved Harley Davidson.
Now the fools that got their hands on the company after that decided to go woke. The board of directors brought in from Europe, the new CEO, Jochen Zeitz, declaring Harley Davidson would be woke the year after Bud Light decided it was going to be woke as well. The mecca of motorcycling is Sturgis. I was there when both things happened. The huge street bar owned by Bud Light was empty and the grumble was nobody’s going to drink that tranny beer. And much like George Bush learning nothing from what the Soviets were doing in Afghanistan, Harley Davidson pulls the same stunt. The target demo for these motorcycles is principally middle-aged men, veterans, conservatives, Trump supporters, and so the factory decided to go woke on them. The manufacturers are now in huge difficulty and much of it is because of woke policies and building electric motorcycles. And a company that always prided itself on “made in America” was like the rest of the multinationals, they were headed abroad.
Harley Davidson is more than just a motorcycle. It’s a culture. People got mad. The company faced a boycott over DEI efforts. Read the stories of John Deere and Tractor Supply, both of those corporations have now stepped away from DEI in favor of keeping customers, and Harley finally responds. The culture of Harley Davidson is more than just motorcycles. It is, as they say, a way of life.
And what the current board did was offensive to everybody up and down the line. Now they’ve slammed the brakes on woke policies after sparking outrage. They’re in search of a new CEO and board members have resigned.
It’s a microcosm of how things can work. What Donald Trump is doing was done once by Ronald Reagan. And nobody remembers that story. I’d like you to at least look at the accomplishments of Reagan in 1983, and the real question is can it be done again on a macro scale?
Ride fast, take a lot of chances. Make a lot of noise.
— Peter Boyles
