What happened 

Shares of motorcycle manufacturer Harley-Davidson Inc. (NYSE:HOG) jumped as much as 7.3% in early trading Tuesday after reporting second-quarter 2018 results. As of 10:45 a.m. EDT, shares were still up 7% and seemed to be gaining momentum. 

So what

Revenue fell 3.3% in the quarter to $1.53 billion, and net income was down 6.4% to $242.3 million, or $1.45 per share. Results were well above the $1.41 billion in revenue and $1.34 per share in earnings that analysts were expecting. 

Two people riding motorcycles on the highway.

Image source: Getty Images.

Motorcycle shipment revenue remained flat with 231,000 to 236,000 units in 2018, which should be seen as a positive given recent tariffs in both the U.S. and Europe. Aluminum and steel tariffs implemented by President Trump are expected to cost the company $15 million to $20 million, and European tariffs on motorcycles are expected to cost $30 million to $35 million. 

Now what

Results weren't outstanding, but investors were pricing in a poor start to the year after tariffs were announced. Management has also kept full-year volume outlook similar, despite tariffs, which tells me it isn't seeing sales slow in Europe as costs rise. There are still a lot of unknowns for Harley-Davidson as the global trade war heats up. But for now, investors don't think the impact will be as bad as feared.