Discover which industries may face hefty 25% tariffs in Europe!

The recent remarks made by President Donald Trump regarding potential 25% tariffs on imports from Canada and Mexico have sent shockwaves through European businesses with supply chains in these countries. While these companies have minimal asset exposure in the United States, their heavy reliance on North American markets for revenue puts them at risk of disruptions caused by these proposed tariffs.

Here are some European companies identified by Bank of America (BofA) that could face significant challenges due to their supply chain and revenue dependencies in North America:

• Stellantis, the Italian automotive manufacturer, with 16 supply chain links in Canada and 47% of its revenue coming from North America.
• BMW, the German automotive giant, with 18 supply chain links in Canada and 26% of its revenue from the US.
• National Grid, a UK utilities firm heavily tied to the US market with 50% of its assets and 54% of its revenue originating from the region.
• Holcim, a Swiss industrial company relying on North American markets for 39% of its revenue.
• Ferrovial from Spain, generating 50% of its revenue from the US.
• Tenaris, an Italian energy firm with 9 supply chain links in Canada and Mexico.
• Vestas Wind Systems, a Danish company deriving 37% of its revenue from North America.
• Lonza Group AG, a Swiss healthcare company with significant US revenue exposure.
• Brenntag AG, a German chemicals firm with supply chain links in Canada and Mexico.
• Nestle SA, a Swiss food and beverage giant with extensive supply chain links in Canada and Mexico.

In addition to these companies, others like AstraZeneca, ABB Ltd, Mercedes Benz Group AG, Volkswagen, and Epiroc could also be impacted by these tariffs. The looming threat of increased tariffs highlights the importance of diversifying supply chains and reducing dependency on specific regions to mitigate risks in times of economic uncertainty.

It is crucial for these companies to reassess their strategies and explore alternative options to minimize the potential impact of these proposed tariffs. By proactively addressing these vulnerabilities, companies can position themselves to navigate unforeseen challenges and emerge resilient in the face of changing trade dynamics.