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.
Other 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.