Please ensure Javascript is enabled for purposes of website accessibility

Despite Last-Minute Changes, Senate Bill Deals Big Blow to Renewable Energy

17 hours ago

Trump-Backed Tax-Cut and Spending Bill Passes US Senate

19 hours ago

Homeland Security Secretary Noem Says CNN May Be Prosecuted Over Report on Migration App

19 hours ago

Israeli Officials to Hold Ceasefire Talks in Washington Amid Military Escalation in Gaza

20 hours ago

Trump Escalates Feud With Musk, Threatens Tesla, SpaceX Support

20 hours ago

Musk Vows to Punish Lawmakers Who Back Trump’s Spending Bill

1 day ago

Will Valadao Spoil Trump’s Plan for July 4th ‘Big Beautiful Bill’ Signing?

2 days ago

Shaver Lake and Reedley 4th of July Shows Are Wednesday. Who Else Is Celebrating?

2 days ago
Why It Doesn't Matter If a Harley Is 'Made in America'
The-Conversation
By The Conversation
Published 7 years ago on
July 9, 2018

Share

Harley-Davidson was one of the president’s favorite companies less than six months ago. Now it’s the latest business to feel his wrath.
That’s because on June 25, Harley-Davidson announced it will move some of its production overseas. The iconic American motorcycle brand said it was doing this to avoid retaliatory tariffs imposed by the European Union in response to U.S. import taxes.

Photo portrait of Christina Fattore
News Analysis
Christina Fattore
“A Harley-Davidson should never be built in another country – never!” President Donald Trump tweeted “Their employees and customers are already very angry at them. If they move, watch, it will be the beginning of the end.”
Back in February, things were very different. At a meeting with executives at the White House, Trump praised Harley-Davidson for being “a true American icon, one of the greats,” and thanked them “for building things in America.”
As an international relations expert who focuses on trade disputes, Trump’s anger at Harley’s announcement is understandable. He wants to promote Harley-Davidson for his “America First” agenda. The goal of this approach is to protect and create American manufacturing jobs. With Harley taking the production of its EU-bound bikes abroad, this does not look like a success for Trump.
But this got me to thinking, in a world that depends on global supply chains, what makes a product truly “made in America”? Is a Harley really an all-American bike? Who even cares?

Trump and Vice President Mike Pence met with Harley-Davidson CEO Matthew Levatich in February.
AP Photo/Pablo Martinez Monsivais, file

What ‘Made In America’ Means

For consumers hoping to figure out if a product is made in the U.S., it’s trickier than you’d think.
Products like American soybeans or corn are pretty clear-cut: They are grown and harvested in the U.S. by American farmers, in states like North Dakota and Iowa. The only inputs are seeds, land, fertilizer and water – all of which are easily found in the U.S.
“American-made” clothing, on the other hand, becomes more ambiguous. Even when a garment is sewn in a factory in New York or Los Angeles, earning it its “Made in USA” tag, the fabric or thread may have been spun in Bangladesh or India with American-grown cotton.
The Federal Trade Commission has a 40-page document that thoroughly explains what makes an item “Made in USA.” Basically, to earn that designation, a product has to be “all or virtually all” made in a U.S. state or territory. Only automobiles, textiles, fur and wool must disclose their U.S. content at the point of sale. Other products may use the tag as long as they follow the guidelines.

Foreign or Domestic

Let’s take a closer look at vehicles.
The parts that comprise “American-made” motorcycles and cars have been shuttled back and forth over North American borders ever since the North American Free Trade Agreement was signed in 1993. American auto manufacturers like Ford and Chevrolet depend on parts from Mexico and the EU and often assemble their cars in Canada.
In 1994, Congress passed the American Automotive Labeling Act, requiring automakers to reveal the share of the parts that came from the U.S. or Canada, the country of assembly, and the engine and transmission’s country of origin. The aim was to encourage more patriotic consumerism on the premise that Americans would buy more of a product if they knew it was produced domestically.
American University business professor Frank DuBois describes some of this data as misleading because it doesn’t break down what share of the parts came from the U.S. versus Canada. He created the 2016 Kogod Made in America Auto Index to track this and other information to come up with a more accurate indicator of how much of a car benefits the U.S. economy. His results reveal the fine line between foreign and domestic.
For instance, Japanese carmaker Toyota assembled its 2017 Camry in the U.S. with an American-made engine and transmission. Three-quarters of the parts came from either the U.S. or Canada, giving it a “total domestic content” score of 78.5 percent. Similarly, Tokyo-based Honda built its Accord in the U.S. with an American engine, Japanese transmission and 80 percent U.S. or Canadian parts, giving it a score of 81 percent.
General Motors’ Chevy Volt, on other hand, contains only 63 percent domestic content and half its parts are from outside the U.S. or Canada, even though its engine is American. The Ford Fusion is even lower: It has a U.K.-built engine, and only a quarter of its parts were made in the U.S. or Canada.

Harley Is a Global Bike

As for Harley-Davidson motorcycles, they may be considered classic Americana, but the components of the bikes themselves come from many places outside the U.S., just like in the auto industry.
Harleys sold in the U.S. are indeed assembled in one of four plants located in Wisconsin, Missouri and Pennsylvania. But the brakes and clutch are imported from Italy, the engine pistons are made in Austria, the bike suspension comes from Japan, and other electronic components originate in Mexico and China.
While Harley-Davidson claims it attempts to use as many American parts as it can, the company is sometimes forced to go abroad to find the right parts in terms of cost and comparable quality.
As for its plan to avoid the EU counter-sanctions, Harley plans to shift some production of bikes intended for European markets to facilities in other countries such as Thailand, where it’s building a new factory.
But that won’t actually change anything for American consumers, no matter what Trump says. In other words, Harleys that Americans buy after its plans go into effect will still be as American as they were a year ago. And all the profits Harley makes will continue to flow to the U.S.

AP Photo/Rogelio V. Solis

Don’t go Bananas, Mr. President

So back to our original question, what does it really mean to be “made in America”?
Since the 1980s, U.S. companies have been using this label in their advertising to push back against foreign competition as global production expanded into Asia and elsewhere. In this era of “America First,” the Trump administration has doubled down on this branding.
But the truth is it makes little sense. Nor does attacking a U.S. company for moving some of its production – production intended for overseas markets and customers – to another country.
In 2013 political scientist Mike Allison and I wrote an article that showed how the meaning of “domestic” can be very expansive. In the 1990s, for example, the U.S. filed a complaint with the World Trade Organization against the EU for quotas it set on bananas from Latin America.
None of the products in the dispute were made in the U.S. or Europe, but two of the biggest growers of bananas – Chiquita and Fyffes – were headquartered in the U.S. and the U.K. respectively. Essentially, both the Clinton and first Bush administrations – as well as officials in the EU – fought over bananas made elsewhere because they figured corporate profits supported by a product mattered more than where it was made.
Furthermore, consumers also look at other things besides where the product is made. In a 2017 poll, 69 percent of Americans surveyed said price is “very important” in considering the purchase of a product. Only 32 percent said not bearing a made in the U.S. label was a dealbreaker.
So the problem with Trump’s tariff push is that other things matter more than where something is made. And companies will do what they have to do to stay competitive, even if it means moving overseas.
Following Harley’s announcement, fellow bike maker Polaris said it was also considering moving some production from Iowa to Poland.
The ConversationOther companies in different industries will likely follow. While Trump may be following a hard line with tariffs against U.S. competitors, Americans will likely see negative effects from that move, either in the form of jobs being shipped overseas or prices rising due to reciprocal tariffs.
Christina Fattore, Associate Professor of Political Science, West Virginia University
Disclosure: West Virginia University provides funding as a member of The Conversation US.
This article was originally published on The Conversation. Read the original article.

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Trump Pulls Back 150 Guard Troops From Federal Duties in California

DON'T MISS

Trump Says Israel Has Agreed to Conditions to Finalize 60-Day Gaza Ceasefire

DON'T MISS

Fresno County Man Arrested for Suspected Arson Hours After Separate Wildfire

DON'T MISS

New California Environmental Rollbacks Could Boost Housing Projects in Fresno

DON'T MISS

Iran Made Preparations to Mine the Strait of Hormuz, US Sources Say

DON'T MISS

Fresno Unified’s Embattled Nikki Henry Exits. ‘I Own My Mistake. I Won’t Let It Own Me.’

DON'T MISS

Trump Floats Daughter-in-Law Lara Trump for Senate Run in North Carolina

DON'T MISS

Google Hit With $314 Million US Verdict in Cellular Data Class Action

DON'T MISS

Tulare County Wildfire Prompts Advisory in Three Rivers Area

DON'T MISS

O’Brien Launches Fresno County Schools Chief Campaign by Handing Out ‘Homework’

UP NEXT

Trump Says Israel Has Agreed to Conditions to Finalize 60-Day Gaza Ceasefire

UP NEXT

Iran Made Preparations to Mine the Strait of Hormuz, US Sources Say

UP NEXT

Trump Says US Could Reach Trade Deal With India, Casts Doubt on Deal With Japan

UP NEXT

Dollar Gains Ground Against Major Peers After Better-Than-Expected US Jobs Data

UP NEXT

France Shuts Schools, Italy Limits Outdoor Work as Heatwave Grips Europe

UP NEXT

Powell Reiterates Fed Will Wait for More Data Before Cutting Rates

UP NEXT

Israeli Officials to Hold Ceasefire Talks in Washington Amid Military Escalation in Gaza

UP NEXT

US Senate Republicans Struggling to Unite on Trump’s $3.3 Trillion Tax-Cut Bill

UP NEXT

Where Trade Talks Stand With Major US Partners Ahead of Tariffs-Hike Deadline

UP NEXT

Suspect Identified in Ambush Shooting That Killed 2 Idaho Firefighters

New California Environmental Rollbacks Could Boost Housing Projects in Fresno

12 hours ago

Iran Made Preparations to Mine the Strait of Hormuz, US Sources Say

12 hours ago

Fresno Unified’s Embattled Nikki Henry Exits. ‘I Own My Mistake. I Won’t Let It Own Me.’

12 hours ago

Trump Floats Daughter-in-Law Lara Trump for Senate Run in North Carolina

12 hours ago

Google Hit With $314 Million US Verdict in Cellular Data Class Action

13 hours ago

Tulare County Wildfire Prompts Advisory in Three Rivers Area

14 hours ago

O’Brien Launches Fresno County Schools Chief Campaign by Handing Out ‘Homework’

14 hours ago

Trump Says US Could Reach Trade Deal With India, Casts Doubt on Deal With Japan

14 hours ago

Jury Reaches Verdict on Some Counts at Sean ‘Diddy’ Combs’ Sex Trafficking Trial

14 hours ago

How Wimbledon Is Tackling Its Hottest Opening on Record

14 hours ago

Trump Pulls Back 150 Guard Troops From Federal Duties in California

LOS ANGELES — The Trump administration released about 150 National Guard troops on Tuesday in the first pullback since it dispatched a milit...

11 hours ago

11 hours ago

Trump Pulls Back 150 Guard Troops From Federal Duties in California

An Israeli military convoy manoeuvres near the Israel-Gaza border, as seen from Israel, July 1, 2025. (Reuters/Amir Cohen)
11 hours ago

Trump Says Israel Has Agreed to Conditions to Finalize 60-Day Gaza Ceasefire

Abel Joel Garcia Zarate, 39, of Biola, was arrested Sunday, June, 30, 2025, in Madera County on suspicion of starting a wildfire just hours after crews responded to a separate blaze sparked by farm equipment. (Madera County SO)
12 hours ago

Fresno County Man Arrested for Suspected Arson Hours After Separate Wildfire

12 hours ago

New California Environmental Rollbacks Could Boost Housing Projects in Fresno

An aerial view of the Iranian shores and the island of Qeshm in the strait of Hormuz, December 10, 2023. REUTERSStringerFile Photo
12 hours ago

Iran Made Preparations to Mine the Strait of Hormuz, US Sources Say

12 hours ago

Fresno Unified’s Embattled Nikki Henry Exits. ‘I Own My Mistake. I Won’t Let It Own Me.’

Lara Trump looks on during Republican presidential nominee and former U.S. President Donald Trump's rally, at the Palm Beach County Convention Center in West Palm Beach, Florida, U.S., November 6, 2024. (Reuters File)
12 hours ago

Trump Floats Daughter-in-Law Lara Trump for Senate Run in North Carolina

A Google logo is seen at a company research facility in Mountain View, California, U.S., May 13, 2025. (Reuters File)
13 hours ago

Google Hit With $314 Million US Verdict in Cellular Data Class Action

Help continue the work that gets you the news that matters most.

Search

Send this to a friend