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Trump to meet with execs from Harley-Davidson, which outsourced IT

Patrick Thibodeau | Feb. 2, 2017
The company in 2012 hired Infosys, a major H-1B visa user

That threat only applies to manufactured goods, not to IT services delivered over the Internet. Trump is considering H-1B reforms, however, that may disadvantage offshore outsourcing firms.

The Harley situation offers an example of how tariffs can be used to protect home-grown industry in the U.S.

In the early 1980s, imported Japanese motorcycles created a glut on the market in the U.S., depressing prices. According to a U.S. government summary: the "U.S. International Trade Commission found in 1983 that increased imports of heavyweight motorcycles threatened serious injury to the domestic industry. This finding gave the president authority to impose temporary import relief to allow the industry time to adjust. A 45% tariff surcharge was imposed with a scheduled phase-out of five years."

 

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