American motorcycle manufacturer Harley-Davidson is shifting production of some of its motorcycles out of the United States to avoid EU retaliatory tariffs.

Harley-Davidson's move is direct evidence that tit-for-tat trade fights have consequences for American companies. Harley-Davidson said it stood to lose as much as 100 million US dollars a year.

As a renowned manufacturing firm, Harley-Davidson has always been viewed as the embodiment of the American spirit: brave, resilient, tough and unbeatable. More importantly, as one of the most famous American brands in manufacturing, Harley-Davidson's products are a representation of "made in the USA."

The exodus of Harley-Davidson’s production will certainly strike a blow to US President Donald Trump's trade policy that aims to maintain US manufacturing industry's competitiveness through imposing tariffs.

In order to appeal to voters who are living below the poverty line, Donald Trump often talks about "bringing manufacturing back to the US," using it as a major plank of his election campaign back in 2016. He promised to create more job opportunities for his supporters by reviving the manufacturing sector. The rhetoric worked and Donald Trump's "hard work" paid off as he was elected president.

He arrived at the White House as a savior in the eyes of those who were struggling to find work. And in those early days, with the purpose of boosting the manufacturing sector, President Trump even invited senior managers of Harley- Davidson to visit the White House, praising their contribution to the nation.

It's not difficult to imagine then, the disappointment of President Trump when he heard that the "American spirit" intended to leave America (at least in part)! But does he fully comprehend what has caused Harley-Davidson to take the action?

It is, of course, the trade policy made by President Trump that has forced Harley-Davidson’s hand.

Trump clearly thought that imposing tariffs on foreign imports would help increase manufacturing jobs in the US. Of course, for every action, there is a counteraction and the world is not as simple as Trump seems to think it is.

“We are finishing our study of Tariffs on cars from the EU in that they have long taken advantage of the US in the form of Trade Barriers and Tariffs. In the end, it will all even out – and it won’t take very long!” Trump tweeted.

On June 22, Trump threatened to impose a 20 percent tariff on all imports of EU-assembled cars, a month after his administration launched an investigation into whether auto imports posed a national security threat.

His actions couldn't help American manufacturing sections, but instead, severely damage their interests due to the higher tariffs imposed by their overseas partners in revenge for Trump's trade policy.

According to Harley-Davidson's official statement, the company has no alternative but to move their factories to some developing countries such as India, Brazil and Thailand in order to save labor force costs. The labor force savings are necessary because the EU has decided to raise tariffs on Harley-Davidson's exports to the EU from six percent to 31 percent.

It is estimated that this will cause a sharp loss in US-based jobs once the company closes its American factories.

Harley-Davidson's leaving may shatter President Trump's ambition to revive American manufacturing through tariffs. What’s even worse however for Trump is that it might be the start of an exodus of American manufacturing firms. Some people worry that Donald Trump's trade policy towards his traditional partners such as the EU, Canada and Mexico will incur the wrath of these countries as they take counter measures.

The leaving of Harley-Davidson isn't the end of the nightmare. Instead, it is the beginning of the domino.