- Harley-Davidson is down more than 2% Thursday as speculation mounts the European Union will retaliate to the US’s steel and aluminium tariffs.
- The motorcycles were previously listed by the EU among the goods that could be hit with retaliatory tariffs.
- The motorcycle manufacturer could be hit from both sides of the trade spat as it is already seeing increased production costs as a result of rising steel prices.
- Watch Harley-Davidson trade in real time here.
Harley-Davidson is down more than 2% Thursday as speculation mounts the European Union will retaliate to the US’s steel and aluminium tariffs.
President Donald Trump will impose tariffs of 25% on imported steel and 10% on imported aluminium beginning on Friday. That has raised the concern Harley-Davidson motorcycles, which were previously listed by the EU among the goods that could be hit with retaliatory tariffs, could be taxed. Europe accounted for 19% of Harley-Davidson’s sales in the first-quarter of 2018, according to its earnings release.
If that were to happen., Harley-Davidson would be getting hit on both ends of the trade spat. It was already feeling the impact of the US’s tariffs, which have caused steel prices to climb.
In March, when Trump first announced the steel and aluminium tariffs on China, Harley-Davidson was quick respond, saying the increased steel prices would hurt its business.
“Import tariffs on steel and aluminium will drive up costs for all products made with these raw materials, regardless of their origin,” the company said in a statement cited by USA Today. “Additionally, a punitive, retaliatory tariff on Harley-Davidson motorcycles in any market would have a significant impact on our sales, our dealers, their suppliers and our customers in those markets.”
Harley-Davidson is down 21.2% this year.