Supermarket group Ahold and Siemens Energy stated on Wednesday that U.S. import tariffs would result in increased prices, with the companies passing on the costs. Voestalpine, a specialty steelmaker, urged Brussels to respond to the tariffs threatened by President Donald Trump.
Executives worldwide are looking to offset the impact of the 25% tariffs on aluminum and steel imposed by the U.S. president and to adapt to evolving U.S. trade policies affecting industries like automobiles, consumer goods, and energy.
Trump's trade advisers outlined plans for reciprocal tariffs as part of the president's promise to levy tariffs on any country imposing duties on U.S. imports, heightening concerns about a potential global trade conflict.
European Union trade ministers were set to convene via videoconference to decide on a course of action following European Commission President Ursula von der Leyen's statement that the bloc's reaction "will not go unanswered."
Siemens Energy foresees negative effects from tariffs, particularly in its Mexican operations, which are highly vulnerable to additional charges on power equipment. CEO Christian Bruch confirmed that increased prices would be transferred to customers, aligning with recent industry remarks.
Dialogue among media and investors during quarterly earnings calls has been overshadowed by Trump's trade policies. The LSEG data shows that over 380 companies within the S&P 1500 index have addressed the impact of tariffs since the start of the year.
Ahold Delhaize, a supermarket group, anticipates that U.S. tariffs on Mexico and Canada will lead to elevated prices for food, vegetables, and paper products, as stated by CEO Frans Muller.
European shares reached a record high on Wednesday amid the uncertain global trade landscape. Barclays' European equity strategists noted that despite tariff threats being seen as negotiation tactics at present, companies exposed to tariffs and foreign exchange fluctuations, like automobiles and consumer goods, remain at risk.
European firms could face an earnings decline of 5-10% from 10% tariffs in a worst-case scenario according to Barclays. Heidelberger Druckmaschinen CEO Juergen Otto expressed a more outspoken viewpoint on the trade threats, emphasizing the possible increase in prices for printing presses if tariffs are implemented.
Steel manufacturers in Europe are concerned about a potential influx of low-priced steel into the EU, reminiscent of developments during the previous Trump administration. voestalpine urged the EU to take immediate countermeasures and initiate discussions with the U.S. regarding tariffs.
Aperam urged Brussels to intervene to restrict imports if U.S. tariffs on steel and aluminum result in companies redirecting exports to the EU. Germany's economy ministry emphasized the need for EU negotiations to avoid a transatlantic trade conflict and readiness for countermeasures ahead of the EU trade ministers' meeting.
The chairman of Foxconn in Taiwan mentioned the company's ability to adjust production in response to new U.S. tariffs, as the main iPhone producer for Apple.