By
Godfrey Benjamin
January 16th, 2024
Harley-Davidson (HOG) saw its shares soar as high as 9.4% in the pre-market, following the announcement from the EU and the US.
American motorcycle manufacturer, Harley-Davidson Inc (NYSE: HOG) has showcased itself as one of the biggest beneficiaries of the end to the lingering trade dispute between the US and the EU. At the G20 Summit over the weekend, President Joe Biden inked an agreement to suspend the tariffs on European steel and aluminum, introduced back in 2018 by the President Donald Trump administration on national security grounds.
The European Union also retaliated by imposing stiff tariffs on American exports including peanut butter, Bourbon whiskey, and orange juice amongst others. With a plan to levy as much as 6.4 billion euros ($7.78 billion) worth of tariff on US exports, and about 2.8 billion euros targeted thus far, trades between the two regions have been significantly strained since President Biden took office.
From the shared by the leaders of both regions, the end to the dispute is here as President Biden calls the deal a “creative solution.” He added that the suspension;
“Immediately removes tariffs on the European Union on a range of American products and lowers costs on American consumers, and ensures a strong and competitive U.S. steel industry for decades to come.”
The EU’s trade chief, Valdis Dombrovskis also confirmed that the bloc “have agreed to pause our steel & aluminium trade dispute and launch cooperation on a Global Arrangement on Sustainable Steel & Aluminium.”
The new development allays the fears of global allies on the stance of the Biden Administration in relation to foreign policies, seeing the uncharacteristic way he pulled American troops out of Afghanistan strengthening the Taliban takeover of the dispute-ridden country. By ending the trade war initiated by President Trump, America now appears to be back on track with one of its greatest trade allies in the world.
HOG: One of the Biggest Beneficiaries of the US and EU Trade Resolution
Harley-Davidson (HOG) saw its shares soar as high as 9.4% in the pre-market, following the announcement from the EU and the US. At the time of writing, the company’s shares are trading at 7.54% to $39.24 as it continues its bullish rally.
While many companies from both regions are set to benefit from the end of the trade dispute, Harley-Davidson issued a statement to thank the Biden Administration for putting an end to the trade war that was not of the company’s making.
“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 US. Administration, for their efforts in this negotiation,” said Jochen Zeitz, Chairman, President, and CEO of Harley-Davidson. “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 US-EU trade relations, that will allow us to further Harley-Davidson’s position as the most desirable motorcycle brand in the world.”
Had the dispute not been resolved, the Milwaukee, Wisconsin-based firm would have paid up to 56% in tariffs.