The US Administration imposes trade tariffs on imports from the European Union. The EU retaliates by imposing tariffs on US goods. A trade war has now started. You are the CEO of Harley Davidson, manufacturing motorcycles in the US. An important part of your market is in Europe, where your products now cost 25% more as a result of the new tariffs. What do you think is the best strategy you might realistically adopt in order to deal with this problem with a minimum of loss of profits and/or revenues? More than one answer is possible, so you'll have to pick the best and most realistic one (which happens to be the one that the company in fact adopted). Shift some of your manufacturing to Europe, thereby avoiding the EU tariffs Raise end-user customer prices by 25% Renegotiate contracts with all your suppliers so that you drastically cut production costs enough to enable your firm to cut European end-user prices while maintaining profitability Replace your European sales by shifting those sales to the US Cut your prices to your European dealers by an equivalent amount of the tariffs, so that end-user prices stay the same