There’s bound to be some collateral damage in President Trump’s trade wars, and Harley-Davidson Inc (NYSE:HOG) appears to be one of those unintended victims.
The motorcycle maker warned on Friday that Trump’s new tariffs on steel an aluminum imports will increase is manufacturing costs. In addition, the response from the EU to increase duties on motorcycles and other goods will negatively impact sales overseas.
CNBC has more details on the development:
Nineteen percent of Harley-Davidson’s sales were to Europe in the first fiscal quarter of 2018, according to the company’s earnings release.
“Import tariffs on steel and aluminum will drive up costs for all products made with these raw materials, regardless of their origin,” company officials said in a statement. “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 Inc shares closed at $40.68 on Friday, down $0.40 (-0.97%). Year-to-date, HOG has declined -18.72%, versus a 2.94% rise in the benchmark S&P 500 index during the same period.
HOG shares closed at $40.68 on Friday, down 1% on the day.