ETFs Heavy with Harley Down on Latest Tariffs

New tariffs on U.S. Goods, including bourbon, yachts and motorcycles imposed by the European Union are already being felt by companies, such as iconic American motorcycle manufacturer Harley-Davidson as the company announced it would begin shifting some of its production to its international facilities to curb costs.

Harley’s stock dropped sharply by 6.92%. ETFs with the heaviest Harley-Davidson exposure felt the burn as well–First Trust NASDAQ Global Auto ETF (NASDAQ: CARZ) was down 2.84% and First Trust Nasdaq Transportation ETF (NASDAQ: FTXR) fell by bout 4%.

Related: Fallen Angel ETF Contends With Rates, Trade Issues

“To address the substantial cost of this tariff burden long-term, Harley-Davidson will be implementing a plan to shift production of motorcycles for EU destinations from the U.S. to its international facilities to avoid the tariff burden,” the company said in a filing.