MILWAUKEE — Shares of Milwaukee-based Harley-Davidson have spiked following the resolution of Trump-era steel and aluminum tariffs between the U.S. and the European Union.
Harley-Davidson's shares rose 9.4 percent in the premarket after the U.S. and the EU announced over the weekend they are easing out of a trade dispute that started during the Trump administration. The previous administration imposed a 25 percent tariff on steel and 10 percent on aluminum in 2018, citing national security, CNBC reports.
“We have agreed to pause our steel & aluminium trade dispute and launch cooperation on a Global Arrangement on Sustainable Steel & Aluminium [sic],” said the EU’s trade chief official over the weekend.
Following the tariffs in 2018, the EU had taken the issue to the World Trade Organization and issued retaliatory measures on up to $7.78 billion of U.S. exports - including motorcycles, Bourbon whiskey, peanut butter and orange juice.
Harley-Davidson could have paid EU tariffs of 56% if the issue had not been resolved, according to CNBC.
Jochen Zeitz, the Chairman, President and CEO of Harley-Davidson, issued the following statement on Monday:
"Today's news is a big win for Harley-Davidson and our customers, employees and dealers in Europe. Our thanks go out to President Biden, Secretary Raimundo and the U.S. Administration, for their efforts in this negotiation. We are excited that this brings an end to a conflict that was not of our making, and in which Harley-Davidson had no place. This is an important course correction in U.S.-EU trade relations, that will allow us to further Harley-Davidson's position as the most desirable motorcycle brand in the world."