Investing.com — President Donald Trump’s feedback on potential 25% tariffs focusing on imports from Canada and Mexico have sparked issues amongst European corporations which have provide chains in these two international locations, however a bigger income than asset publicity to the US.
In a Thursday notice, Financial institution of America (BofA) highlighted dozens of European corporations significantly susceptible to those tariffs because of their provide chain and income dependencies.
Amongst these is Stellantis (NYSE:), the Italian automotive producer. In keeping 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 big 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 vulnerable 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 international locations are negligible.
Different notable mentions embrace Tenaris (BIT:), an Italian power agency, with 9 provide chain hyperlinks in Canada and Mexico, and 52% of its income tied to North America. Furthermore, Denmark’s Vestas Wind Techniques (CSE:) has 14 provide chain hyperlinks in Canada and derives 37% of its income from the NA.
Even the healthcare sector reveals publicity. Switzerland-based Lonza Group AG (SIX:) maintains 4 Canadian provide chain connections whereas producing 32% of its income from the US.
German chemical compounds agency Brenntag AG (ETR:) has each Canadian and Mexican provide chain hyperlinks, alongside 36% US income publicity, whereas Switzerland’s meals and beverage big Nestle SA (SIX:) operates 8 Canadian and 10 Mexican provide chain hyperlinks and earns 35% of its income from the US.
Different corporations listed by BofA are AstraZeneca (NASDAQ:), ABB Ltd (SIX:), Mercedes Benz Group AG (ETR:), Volkswagen (ETR:), Epiroc (ST:), and several other extra.
