Harley-Davidson Inc. shares rallied sharply Monday after the U.S. and European Union settled a dispute over steel and aluminum tariffs.
The Milwaukee-based motorcycle maker was facing a 56% tariff in Europe.
The agreement to remove the tariffs is a "big win for Harley-Davidson and our customers, employees and dealers in Europe," said CEO Jochen Zeitz in a statement. "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."
The deal will help mitigate cost pressures that have surfaced as a result of the supply-chain issues that have impacted manufacturers all over the world. Harley last quarter added a surcharge on bike sales to offset the higher costs.
Relief from rising costs will surely help a company in the midst of a turnaround plan. The "Hardwire" plan, announced in February, calls for Harley to invest up to $250 million per year to electrify its bike lineup.
Harley-Davidson on Wednesday reported stronger-than-expected earnings and sales despite the ongoing supply-chain constraints that have limited motorcycle shipments.
The company earned $1.18 per share as revenue rose 20% year over year to $1.16 billion. Analysts surveyed by Refinitiv were expecting earnings of 70 cents per share and revenue of $1.14 billion.
Harley-Davidson shares were down 0.6% this year through Friday, compared with the S&P 500’s 23% gain.