#8 PostAuthor: doebag » Tue Mar 19, 2013 7:36 pm
They are known as 'Tariff Busters' in the US.
In 1982 President Ronald Reagan, following the recommendation of the International Trade Commission, imposed additional tariffs on imported heavyweight (over 700cc) Japanese motorcycles. The tariffs were to be in effect five years and would protect the American motorcycle industry-in effect, Harley-Davidson-from unfair competition.
Harley had argued that despite declining demand, Japan refused to cut back production of its heavyweight bikes and was shipping the surplus to the U.S., where they were sold at deep discounts.
The Japanese quickly retooled to make their 750cc engines into 699cc engines, thus slipping under the law by one cubic centimeter. The bikes with these engines were termed "tariff busters." Despite this ploy, Harley was able to use the protected time to great advantage, and in 1986, one year before the tariffs were due to expire, the company pulled off a public relations coup. They asked that the tariffs be removed.
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