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European companies are advocating for a financial hit of a potential trade war with the US, and some top executives warn that Donald Trump’s uncertainty is already affecting investment plans.
US President delayed steep tariffs Against Canada and Mexico earlier this week, but there are still the EU in its crosses, leaving the executions of speculations on the extent and impact of any new levies.
Markus Krabber, CEO of German RWE, one of Europe’s greatest energy producers, said the threat of tariffs slowed down his group investment in the Wind and Solar projects in the USA.
Potential import customs duties have created enormous uncertainty in relation to “what you can enter the US,” Krabber said at the conference this week.
Medium goods like rotor and batteries should be introduced because there is no local production in the US, “he added.
Some companies, including the luxury goods of the LVMH group and the oil main shell were Given the increase in their presence in the US. But Krabber said, “Our great customers all speak [Trump] The administration that the security should be provided quite quickly, otherwise, in fact, they achieve the opposite of what they want. ”
Analysts from Goldman Sachs said that “they are not necessarily tariffs that were important, but a trade uncertainty that achieves economic growth and intentions of investment.”
The bank is already expecting some influence from trade barriers, and its team has projects European earnings per share at only 3 percent in 2025 – which is significantly below the consensus forecasts of analysts.
EU is Preparation to offer concessions To prevent trade war with Trump, who complained that Europeans “do not buy our cars, do not take our farms, take almost nothing and we take everything from them.”
The block accounts for approximately 15 percent of American imports, with machines, medicines and chemicals among top exports to America. The European Automobile Sector is also exposed to tariffs, especially if the EU empowers the levies on US goods.
“The big question is what happens if these tariffs come between the US -Ai Europe,” said Jim Rowan, the Volvo Cars CEO.
Although it would be “manageable” if now they raised the EU goods from 2.5 to 10 percent, a larger margin would force the company to increase production in its plant in South Carolina, Rowan said this week.
The Swedish group warned this week of less profitability this year, in part because of the insecurity of the tariff. France group Pernod Ricard drinks said that could be affected.
List of London List Congglomerate Diageo forecasts a hit of $ 200 million for operating profit by June if Trump has made his threatening 25 percent of Mexican and Canadian imports.
Jan Rindbo, Executive Director of the Danish Commercial Shipping Group Norden, warned that If the EU revenge Against American tariffs with their own names, then the companies would be “twice affected”. The trade war could lead to EU companies import some goods from further notice, like South America, he added.
Although demand for a wider range of shipments would be positive for the shipping sector, this could overall mean that “the American economy will be affected, that the EU economy will be affected,” he said.
Despite concern, numerous executives have said they have flexibility to adapt to trade disorders. Energy companies could redirect the liquefied natural gas to avoid the fuel -imposed tariffs between the US -ai China, said Patrick Pouyanné, CEO of French Totalengies.
“Chinese buy energy from companies like Total. In fact, they just asked us to avoid paying [tariff]To give them some Australian or Qatari LNG, and we will take American LNG and send it elsewhere, maybe in Europe, “he told the Financial Times.
Arcelormittal, the second largest steel manufacturer, has played exposure to potential American tariffs on Mexico and Canada. The Canadian Group Operation is a critical supplier of the US car sector, while the US facility use semi -empty steel products from Mexico.
Genuino Christino, the Arcelormittal Cinemas Chief, said he was “not overly concerned” for the possibility of tariff. The company, he said, hit about $ 100 million per quarterly in 2018, when Trump last imposed 25 percent of Tariff on Steel. Higher costs, however, are compensated for by higher prices.
Micel Johansson, executive director of the Swedish champion in Saaba defense, told FT: “It’s a little prematurely understanding where he is going. The trade wars are never good for anyone.”
Reporting Sylvia Pfeifer, Kana Inagaki, Oliver Tell and Clara Murray in London, Olaf Storbeck in Frankfurt, Ian Johnston in Paris and Richard Milne in Oslo
