Multinational companies including supermarket group Ahold Delhaize and Siemens (ETR:SIEGn) Energy addressed the impending challenges posed by U.S. import tariffs announced by President Donald Trump, Reuters reported.
These tariffs, which include a 25% duty on aluminum and steel, are expected to lead to price increases for consumers as companies plan to pass on the additional costs. The trade policy, which has been a dominant topic during fourth-quarter earnings calls, is causing concern across various industries, from consumer goods to energy sectors.
Siemens Energy, with its extensive network in Mexico, anticipates its power equipment supplies will be particularly vulnerable to the new charges. CEO Christian Bruch stated that while the exact financial impact is not yet quantifiable, the company will inevitably transfer the increased costs to its customers. This sentiment echoes the broader apprehension felt by executives as they navigate the changing U.S. trade landscape.
Ahold Delhaize, which operates U.S. chains such as Food Lion, Stop & Shop, and Hannaford, foresees price hikes for food, vegetables, and paper products due to the tariffs on Mexico and Canada.
Group CEO Frans Muller mentioned that the company might consider sourcing more products from within the U.S., such as the West Coast and Florida, to mitigate the effects of less competitive Mexican imports. "If there would be tariffs on Mexican fruit and vegetables or Canadian paper products, then we will have an inflationary effect in those categories," Muller explained.
Despite the uncertain global trade environment, European shares achieved a record high on Wednesday. Barclays (LON:BARC)’ European equity strategists regarded the tariff threats primarily as a negotiation tool, though they acknowledged risks for tariff- and foreign exchange-exposed stocks, such as autos and consumer staples. The bank estimated that European companies could experience a 5-10% earnings hit from 10% tariffs in a worst-case scenario.
In response to the potential influx of cheap steel into the EU, similar to what occurred in 2018, European steelmakers are expressing concern. Austrian specialty steelmaker voestalpine has urged the European Union to take immediate countermeasures and initiate negotiations with the U.S. regarding tariffs.
Similarly, French steelmaker Aperam (AS:APAM) called on Brussels to curb imports if U.S. duties prompt increased shipments to the European Union.
Meanwhile, the chairman of Taiwan’s Foxconn (SS:601138), the world’s largest contract electronics manufacturer, indicated that the company has the flexibility to adjust its production in response to new U.S. tariffs.
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