Investing.com — President Donald Trump’s comments about potential 25% tariffs targeting imports from Canada and Mexico raised concerns among European companies that have supply chains in the two countries but higher income from exposure to U.S. assets.
In a statement on Thursday, Bank of America (BofA) highlighted dozens of European companies that are particularly vulnerable to these tariffs because of their dependence on supply chains and revenues.
Among them is Stellantis (NYSE: ), an Italian car manufacturer. According to BofA, the company has 16 supply chain links in Canada and earns 47% of its revenue from North America (NA), despite no reported US tangible asset exposure.
Similarly, BMW (ETR: ), another auto giant from Germany, has 18 supply chain links in Canada and derives 26% of its revenues from the US, while its assets are exposed to the US as much as 18%.
National network (LON:), the British utility company with a market capitalization of 58 billion euros, has a significant footprint in the US, with 50% of its assets and 54% of its revenues related to the region. Although its tangible supply chain ties in Mexico and Canada are minimal, its heavy exposure to the US makes it highly vulnerable to tariff disruptions.
In the industrial sector, Switzerland Holcim (SIX:) relies on NA markets for 39% of its revenues, with 5 Canadian and 3 Mexican supply chain links.
Spain’s Ferrovial, which generates 50% of its revenue from the US, also appears on BofA’s radar, although its supply chain links in the two target countries are negligible.
Other notable mentions include Tenaris (BIT:), an Italian energy company, with 9 supply chain links in Canada and Mexico, and 52% of its revenues related to North America. Moreover, Denmark Vestas wind Systems (CSE:) has 14 supply chain links in Canada and derives 37% of its revenue from NA.
Even the healthcare sector is showing exposure. Switzerland-based Lonza Group AG (SIX:) maintains four Canadian connections in its supply chain while generating 32% of its revenue from the US.
German chemical company Brenntag AG (ETR:) has both Canadian and Mexican supply chain links, with 36% exposure to US revenues, while Swiss food and beverage giant Nestle SA (SIX:) operates 8 Canadian and 10 Mexican supply chain links and earns 35% of its income from us.
Other companies listed by BofA include AstraZeneca (NASDAQ: ), ABB Ltd (SIX: ), Mercedes Benz Group AG (ETR: ), Volkswagen (ETR: ), Epiroc (ST: ) and several others.
