Harley-Davidson Import Tariffs

On three occasions after the Second World War, Harley-Davidson asked for higher import tariffs to be slapped on imported motorcycles. The first was in 1950, in response to the increasing numbers of British bikes being sold in America. At the hearing before the US Trade Commission. Harley-Davidson's charge of unfair competition was objected to by Alfred Child, who revealed Harley's then current restrictive practices towards its dealers. As a result, the application was turned down. The same thing happened in 1978 when Harley-Davidson applied for protection against Japanese imports. This time, dealers testified that the Aermacchi¬ built machines were outdated and uncompetitive against the Japanese. Only in 1983 did the company succeed in getting new tariffs, imposed on imports of over 700cc for five years: Harley had a stronger case this time, and the Ronald Reagan administration was more sympathetic to higher tariffs. In a brilliant piece of PR, Harley-Davidson was able to request that the 1983 tariff be lifted a year earlier than its five-year term.