Harley-Davidson stock hit a three year high after news the impending EU tariff issue has been suspended, according to Reuters. The EU had threatened to double the tariffs on Harleys, American-made whiskey and powerboats to 50% on June 1 in retaliation for steel and aluminum tariffs stemming from a battle between Boeing and EU-based Airbus.
“This is the first step in the right direction in a dispute not of our making,” said CEO Jochen Zeitz. “Harley-Davidson employees, dealers, stakeholders and motorcycles have no place in this trade war. These tariffs provide other motorcycle manufacturers with an unfair competitive advantage in the EU. European motorcycles only pay up to 2.4% to be imported into the US.”
The European Commission, which oversees EU trade policy, said on Monday it would suspend the planned hike of retaliatory tariffs for up to six months. “We are encouraged by today’s announcement that tariffs affecting our products will not escalate from 31% to 56%,” added Zeitz. Harley’s shares gained 8.5% on Monday to $51.73, their highest level since January.
The 118-year-old American brand had tried to escape the punitive measure by shifting the production of motorcycles for European markets to Thailand from the US – a move that prompted former president Trump to back a boycott of the motorcycle manufacturer.
However, the EU last month ruled that its bikes produced in Thailand would be treated as US-made.
