18 Sep

Did Trump’s Tweet Impact Harley-Davidson Stock?

WRITTEN BY Jitendra Parashar

Harley-Davidson stock

In week 37, the week ending September 14, Harley-Davidson stock (HOG) fell 0.2% despite the broader market and auto stocks’ (XLY) recovery. Last week, the S&P 500 rose 1.2%, while automakers like General Motors (GM), Ford (F), and Fiat Chrysler (FCAU) gained 2.1%, 1.9%, and 5.7%, respectively. As of September 17, Harley-Davidson stock was hovering in the negative territory on a year-to-date basis with 12.8% losses.

Did Trump’s Tweet Impact Harley-Davidson Stock?

President Trump and Harley-Davidson

In June, Harley-Davidson stated that “EU tariffs on Harley-Davidson motorcycles exported from the U.S. have increased from 6% to 31%.” The company said that “these tariffs will result in an incremental cost of approximately $2,200 per average motorcycle exported from the U.S. to the EU.” If Harley-Davidson passes on the extra cost burden to its consumers, it’s already weakening European sales could weaken more.

To avoid high tariffs, Harley-Davidson decided to shift the production of motorcycles made for the European market from US factories to international factories. The move didn’t please President Trump. He warned Harley-Davidson on Twitter that if it moves the production internationally, it “will be taxed like never before!”

On September 12, President Trump targeted Harley-Davidson in a tweet and said that “Many @harleydavidson owners plan to boycott the company if manufacturing moves overseas. Great! Most other companies are coming in our direction, including Harley competitors. A really bad move! U.S. will soon have a level playing field, or better.”

Going forward, Harley-Davidson stock might continue to remain mixed due to tariff threats. President Trump’s consistent criticism of Harley-Davidson might continue to concern investors.

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