In the artcle, Cato warned:

Harleyâ€™s measures were indeed effective in returning the company to profitability and competitiveness. In 1987, a year ahead of schedule, Harley requested that the tariff rate quotas be removed from imported motorcycles. In 2001, Harley-Davidson was named company of the year by Forbes. Despite the global recession, sales grew to $3.3 billion, a 15 percent increase over the previous year. Share value increased by a staggering 40 percent.

"When they say thereâ€™s not enough money, they mean thereâ€™s not enough money for YOU." - Jill Stein, Green Party presidential nominee.

From [ 74.125.155.132 ] :On September 1, 1982, Harley-Davidson Motor Company and Harley-Davidson York, Inc., filed a petition for â€œrelief,â€ or protection, with the U.S. International Trade Commission (ITC). The filing, a request under Section 201 of the U.S. Trade Act of 1974, was a request for escape clause relief from the damaging imports of heavyweight motorcycles into the United States. Harley-Davidson Motor Company, and more specifically its traditional large engine motorcycle, the hog, was facing dwindling domestic market share. This was a last desperate act for survival.Throughout most of the first half of the twentieth century, there were more than 150 different manufacturers of motorcycles in the United States. By 1978, however, there were only three, and only one, Harley-Davidson, was U.S.â€“owned. The other two U.S. manufacturers were Japanese-owned, Kawasaki and Honda America.By the early 1980s, Harley-Davidson was in trouble. Imports held a 60 percent share of the total heavyweight motorcycle market by 1980, and they continued to grow. Harleyâ€™s difficulties worsened as its products suffered increasing quality problems, with labor and management facing off against one another instead of against the competition. By the end of 1982, in a total domestic market that had seen no growth in three years, import market share rose to 69 percent. [...]What has become known as the â€œHarley Lawâ€ was the resulting finding of the ITC that imports were a contributing cause of injury to the domestic heavyweight motorcycle industry. The ITC recommended to thenâ€“President Ronald Reagan that import duties be increased for a period of five years.***The Cato Institute published an article incritical of the motorcycle tariff called( [ www.cato.org ] ).According to the economic analysis and estimation that have been done on the Harley-Davidson case,ITC specialists predict that the tariff hike will raise prices 10 percent the first year. Other officials believe that the price increase might be as high as 17 percent. In 1982, retail prices on heavyweight motorcycles ranged from $1,000 to $5,000. Stockpiles of unsold bikes accumulated during 1982 because motorcycle-industry anticipations had been overoptimistic for what turned out to be a recessionary period. Some say these bikes make up a year and a half of inventory. As they are sold off, they will gradually be replaced by bikes affected by the new tariff, and prices will begin to rise more dramatically. The ITC estimated an increase of 12.5 percent for the second year. [...]The Japanese were angry over the tariff hike. "We consider it unfortunate that the American side decided to take this kind of drastic measure," said the counselor for public affairs at the Japanese Embassy in Washington. The Japanese threatened to file charges of unfair trade against the United States under the Geneva-based General Agreement on Tariffs and Trade (GATT)... While the Japanese motorcycle companies are doing their best to counteract the effects of the tariff--and, thereby, to lessen the support it will give to Harley--[...]The Reagan administration was fully aware of the economic losses that the tariff increase would cause.A matter that further obscures the motivations for the action is thatand this fact also was known to the officials. As Paula Stern, one of the three ITC commissioners, put it,Stern feels that the shrinking market in motorcycles is the ultimate cause of Harley-Davidson's problems, as this problem led to the inventory buildup--the imminent threat to Harley-Davidson. Industry consultant Gordon Jennings said in his prehearing statement before the ITC hearing,[...]***But the pro-free trade/anti-tariff Cato Institute was wrong. None of their fears panned out.For the record, Harley today comprises half of the US motorcycle market and a third of the global motorcycle market. ( [ www.wikinvest.com ]) )It's unclear how much of HD's comeback can be attributed to the tariff, but something that is undeniable is that it gave HD some badly needed breathing room at a time when HD was on the verge of bankruptcy and Japanese makers were simultaneously starting to flood the American market with larger Harley-type models like Honda's Goldwing series.***