European Union residents, many Harley fans, offer up views on Trump and tariffs

Rick Barrett | Milwaukee

Show Caption Hide Caption How Europeans feel about the Harley-Davidson tariffs Europeans, many taking part in the Harley-Davidson 115th anniversary celebration in Prague, talk about the tariffs imposed on Harley-Davidson.

PRAGUE – Petr Smutny rides a Harley, plays a Gibson guitar and generally admires America. But like many Europeans, he worries that President Donald Trump’s decisions could whipsaw the global economy.

“The way I feel is that America needed a change. Presidents before Trump were too mild, but sometimes he’s a bit crazy,” said Smutny, who works for a Swedish commodities company and lives in Prague.

This weekend, the Czech Republic capital is center stage for Harley-Davidson Inc.’s 115th anniversary celebration in Europe, a prelude to a similar party coming to Milwaukee on Labor Day weekend.

About 100,000 Harley riders from 77 countries are expected at the Prague rally as the company remains in the global spotlight for the European Union imposing a 31 percent tariff on U.S.-made motorcycles.

The EU’s move prompted the company to announce that it will send some motorcycle production from the U.S. to its overseas factories – located in India, Brazil and Thailand – where the bikes can be built and shipped to Europe without steep tariffs.

That prompted a series of angry tweets from Trump, who chastised the Milwaukee-based company for manufacturing motorcycles outside of the U.S. as he attempts to negotiate trade deals.

More: Castles and bikes: Harley riders from around the world roll into Prague

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Smutny says he understands Trump’s gripes about a trade imbalance with other nations, especially China, so he doesn’t dismiss the president’s actions altogether.

“I like some things he’s doing,” he said, but when Trump imposed steep tariffs on foreign steel and aluminum, it raised metal prices in the U.S. and triggered the cascade of counter tariffs from Europe.

A plethora of Wisconsin goods, including Harleys, cranberries, sweetcorn, ginseng, wood, paper, boats and shoes are on the EU’s list for retaliatory tariffs.

Nationwide, the list is much longer, and it includes products such as Kentucky bourbon, peanut butter and oranges.

The tit-for-tat trade war that has pitted the U.S. against the EU, Canada and Mexico threatens to drive up prices of many things across the board.

“In the long run, it will not help America because you’re going to have inflation, higher prices. People will lose jobs,” Smutny said.

Outside a Harley-Davidson dealership in Prague, Daniel Baudys drops a pinch of tobacco into a cigarette wrapper, rolls himself a smoke and pauses for a moment before opining about Trump.

He loves action sports such as BMX bicycle racing, but he dreams of owning a Harley.

For now, he can’t afford it. And like many Europeans, he worries about the political fallout from powerful world leaders such as Trump.

“Donald Trump, for me, is like a character from a comics strip. Everything I hear about him, from 10,000 kilometers away, can be changed 10,000 times, so I’m not sure what’s true. … But I am worried about democracies all over the world,” Baudys said.

The trade war will hurt working-class Americans who voted for Trump, said Adrian Percival, a Harley rider from the United Kingdom who rode his bike to Prague.

“Some of the decisions Trump’s come up with, I think, are incredibly detrimental to America,” Percival said. “I think it’s forced companies to start thinking about producing outside of the United States to supply into Europe and the rest of the world.”

If Harley-Davidson wants to avoid the European Union tariffs, it should build motorcycles in the United Kingdom, which is exiting the EU anyway, according to Percival.

“Harley-Davidsons should be made in America, really. But if they have to set up other plants, bring one to England, not Thailand,” he said.

Many Europeans say it would be a serious mistake for Trump to underestimate their resolve in a trade war.

“We can’t let him do anything he wants without saying something,” said Fred Lediouris, who lives in France near the Belgian border.

Mercedes Jimenez, from Germany, says she’s worried about a trade war spreading across many sectors of the European economy.

“It’s not only Harley-Davidson or steel which will have a problem. It will be all the imports and exports worldwide,” said Jimenez, who works in the chemical industry.

Manufacturing products in Asia to avoid European tariffs is only a temporary solution, according to Jimenez.

It’s “getting much more expensive there,” she said.

But if Harley-Davidson and other U.S. companies don’t find a way around tariffs, many Europeans could be priced out of buying their goods.

“We will see what Harley-Davidson will do for supporting its fans and the growth in other countries. And hopefully the United States will change its mind about the situation,” Jimenez said.

It’s early enough in the trade war that many Europeans haven’t noticed much change in their everyday lives, according to an informal poll on the streets of Prague.

“We just know prices will come up. We will feel it,” said Agnese Valonova, a pharmacist from Latvia.

Trade wars are “all so stupid,” said Elizabeth Muller of Austria, adding that she buys locally made items whenever possible.

The objective of the steel and aluminum tariffs imposed by the U.S., according to U.S. Commerce Secretary Wilbur Ross, is to reduce the U.S. trade deficit and shore up American metal producers.

Tariffs, essentially a tax on imported goods, also could be a bargaining chip in renegotiating the North American Free Trade Agreement.

Trump has supporters in Europe, including folks in the United Kingdom who appreciated his backing their vote to exit the European Union.

Steve Nutting, a Harley rider from the U.K., said the U.S. ought to slap a steep tariff on BMW vehicles made in Germany, sending a strong message to the EU about which country has the most clout.

Americans “buy a lot more BMWs than Germans buy motorcycles. So at the end of the day, there’s only going to be one winner, as I see it,” Nutting said.

Nikki Hamilton, who lives only a few miles from Trump’s golf course in Balmedie, Scotland, says she’s also a fan of the president.

“I love him. I think he’s amazing,” Hamilton said.

“Some of his policies are a little bit questionable, but mostly I think he’s doing a good job. I’m there for him,” Hamilton said.