03:52 PM EDT, 05/12/2025 (MT Newswires) -- Harley-Davidson ( HOG ) said Monday that it lowered its estimated cost from tariffs on China after Washington and Beijing agreed to suspend most duties on each other's goods.

The two sides reached an agreement on a 90-day suspension of reciprocal levies following their talks in Switzerland over the weekend. They had been in a trade war since President Donald Trump's announcement of sweeping new tariffs early last month.

Effective Wednesday, China will slash its tariffs on US goods to 10% from 125%, while the US will lower duties on Chinese products to 30% from 145%.

The motorcycle maker anticipates a $45 million reduction in tariff costs this year, assuming the rate on China remains at 30% through Aug. 12 and reverts to 145% thereafter, it said in a filing with the US Securities and Exchange Commission. That would bring down the estimated cost attributable to China to between $30 million and $55 million from a $75 million to $100 million range provided during the May 1 earnings call.

If the tariff level applicable on Chinese products remains at 30% for the rest of the year, Harley-Davidson ( HOG ) expects a $65 million reduction in the original 2025 exposure to the Asian country.

If that happens, global tariffs would cost $65 million to $110 million in 2025, down from $130 million to $175 million previously expected.

Harley-Davidson's ( HOG ) shares were up 4.6% in late Monday afternoon trading.

Management said during the May 1 conference call that it withdrew its 2025 guidance, pending clarity on tariffs and the global economy, according to a FactSet transcript.

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