Investing.com — President Donald Trump’s feedback on potential 25% tariffs focusing on imports from Canada and Mexico have sparked issues amongst European firms which have provide chains in these two nations, however a bigger income than asset publicity to the US.
In a Thursday be aware, Financial institution of America (BofA) highlighted dozens of European firms significantly susceptible to those tariffs as a result of their provide chain and income dependencies.
Amongst these is Stellantis (NYSE:), the Italian automotive producer. In line with BofA, the corporate has 16 provide chain hyperlinks in Canada and earns 47% of its income from North America (NA), regardless of no reported tangible asset publicity within the US.
Equally, BMW (ETR:), one other automotive large from Germany, has 18 provide chain hyperlinks in Canada and derives 26% of its income from the US, whereas its asset publicity to the US sits ast 18%.
Nationwide Grid (LON:), a UK utilities agency with a €58 billion market cap, has a big US footprint, with 50% of its belongings and 54% of its income tied to the area. Though its tangible provide chain hyperlinks in Mexico and Canada are minimal, its heavy US publicity makes it extremely inclined to tariff disruptions.
Within the industrial sector, Switzerland’s Holcim (SIX:) depends on NA markets for 39% of its income, alongside 5 Canadian and three Mexican provide chain hyperlinks.
Spain’s Ferrovial, which generates 50% of its income from the US, additionally seems on BofA’s radar, though its provide chain hyperlinks within the two focused nations are negligible.
Different notable mentions embody Tenaris (BIT:), an Italian vitality agency, with 9 provide chain hyperlinks in Canada and Mexico, and 52% of its income tied to North America. Furthermore, Denmark’s Vestas Wind Programs (CSE:) has 14 provide chain hyperlinks in Canada and derives 37% of its income from the NA.
Even the healthcare sector exhibits publicity. Switzerland-based Lonza Group AG (SIX:) maintains 4 Canadian provide chain connections whereas producing 32% of its income from the US.
German chemical substances agency Brenntag AG (ETR:) has each Canadian and Mexican provide chain hyperlinks, alongside 36% US income publicity, whereas Switzerland’s meals and beverage large Nestle SA (SIX:) operates 8 Canadian and 10 Mexican provide chain hyperlinks and earns 35% of its income from the US.
Different firms listed by BofA are AstraZeneca (NASDAQ:), ABB Ltd (SIX:), Mercedes Benz Group AG (ETR:), Volkswagen (ETR:), Epiroc (ST:), and several other extra.
