Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Impact of trade tariffs on European companies

share with twitter share with LinkedIn share with facebook
share via e-mail
07/27/2018 | 09:57am EDT

(Reuters) - Some European companies are rethinking their strategies to cushion the impact of trade tensions between the world's two biggest economies, the United States and China.

The focus will switch back to China after a truce on tariffs emerged from U.S. President Donald Trump's meeting with European Commission President Jean-Claude Juncker on July 25.

Trump and Juncker agreed to suspend any new tariffs on the European Union, including a proposed 25 percent levy on auto imports, and hold talks over duties on imports of European steel and aluminum.

However, Trump retained the power to impose tariffs, if no progress is made.

In the case of China, Trump threatened this month that he was ready to impose tariffs on an additional $500 billion of imports.

The United States has already imposed tariffs on $34 billion of Chinese imports. In return, China has levied taxes on the same value of U.S. products.

Below are recent comments from European companies on trade tensions:

** Mercedes maker Daimler blamed U.S.-China tariffs for a 30 percent drop in second-quarter profit announced on July 26 and prefigured in a profit warning last month.

** French electrical equipment company Schneider Electric said on July 26 that it foresaw growth slowing in the second half of the year and expected the first extra costs linked to higher U.S. tariffs, which could reach 20 million euros.

** "If the trade war escalates we are more concerned about the consequences that it can have on global macro environment," STMicro's new Chief Executive Jean-Marc Chery, said on July 25, adding that direct impact of trade war risks were currently "negligible".

** Fiat Chrysler cut 2018 outlook on July 25, hurt by weaker performance in China. Its operating profit for the second-quarter was negatively impacted by China import duty changes.

** French mining group Eramet warned that current favorable markets could be hurt by trade rows.

** Chief Executive Frans van Houten confirmed Philips' sales growth target for this year on July 23, but added that trade worries and the unknown consequences of Brexit continued to cause uncertainty.

** Finnish steel maker Outokumpu sees two-fold impact from the U.S. tariffs, with surging imports to Europe resulting in heavy price pressure, whilst in the Americas, base prices have risen throughout spring benefiting local manufacturers, including the company.

** Fellow Finnish company Valmet said tariff increases could derail the recovery and depress its medium-term growth prospects.

** Chinese-owned Volvo Cars said it was shifting production of its top-selling SUV production for the U.S. market to Europe from China to avoid Washington's new duties on Chinese imports.

** German automaker BMW said this month that it would be unable to "completely absorb" a new 25 percent Chinese tariff on imported U.S.-made models and would have to raise prices on the vehicles made in South Carolina.

** The Alliance of Automobile Manufacturers, whose members include General Motors Co, Volkswagen and Toyota Motor Corp, also warned on the impact of the tariffs. A study released by a U.S. auto dealer group warned that the tariffs could cut U.S. auto sales by 2 million vehicles.

** Sweden's Electrolux said on July 18 that the U.S. tariffs announced at the beginning of July would have an impact of $10 million plus this year. In the third quarter, it expects raw material costs to rise by 0.5 billion Swedish crowns.

** Belgian steel wire maker Bekaert reported on the same day that it sees underlying operating profit 20 percent below analysts' estimates in the first half, blaming wire rod costs partly driven up by tariffs.

** Swedish lock maker Assa Abloy's CEO said on July 18 that he sees an important further increase in steel prices in the second part of the year in U.S., partly due to new import tariffs. He expects price hikes to compensate better for the higher cost in the last six month of the year than in the second quarter.

** Austrian steelmaker Voestalpine said on June 6 that about a third of its U.S. sales would be impacted by Washington's steel import tariffs, adding that it was talking to its customers about who would bear the cost.

** Norway's REC Silicon booked an impairment charge of $340 million "due to the market disruption from the curtailment of solar incentives in China, as well as continued trade barriers that prevent access to primary markets inside China."

"We need the U.S. and Chinese governments to cooperate in ending the solar trade dispute ... to prevent additional job losses and to enhance the value of the solar industry in the U.S. and China."

(Reporting by Pawel Goraj and Tommy Lund; Editing by Keith Weir and Alexandra Hudson)

Stocks mentioned in the article
ChangeLast1st jan.
ASSA ABLOY -3.52% 190.7 Delayed Quote.-12.92%
BASE CO., LTD. 1.78% 12580 End-of-day quote.55.12%
BAYERISCHE MOTOREN WERKE AG -1.99% 41.38 Delayed Quote.-24.83%
CLARIANT AG -3.00% 17.615 Delayed Quote.-18.45%
DAIMLER AG -4.76% 33.38 Delayed Quote.-32.39%
ELECTROLUX AB -1.66% 154.15 Delayed Quote.-32.95%
ERAMET -0.89% 31.27 Real-time Quote.-31.78%
FIAT CHRYSLER AUTOMOBILES N.V. -3.73% 7.942 Delayed Quote.-39.81%
FIRST SOLAR, INC. 2.42% 46.62 Delayed Quote.-16.69%
FORBO HOLDING AG -1.15% 1372 Delayed Quote.-16.75%
GENERAL MOTORS COMPANY -3.00% 25.88 Delayed Quote.-29.29%
KONINKLIJKE PHILIPS N.V. -0.44% 40.79 Delayed Quote.-6.27%
NV BEKAERT SA -1.73% 19.26 Delayed Quote.-27.32%
OUTOKUMPU OYJ -0.22% 2.693 Delayed Quote.-4.03%
REC SILICON ASA -16.15% 2.96 Delayed Quote.10.53%
SCHNEIDER ELECTRIC SE 0.81% 89.24 Real-time Quote.-2.47%
STMICROELECTRONICS -0.54% 22.09 Real-time Quote.-7.84%
TOYOTA MOTOR CORPORATION -3.13% 6755 End-of-day quote.-12.43%
VALMET OYJ -0.97% 23.38 Delayed Quote.9.46%
VOESTALPINE AG -3.92% 17.535 End-of-day quote.-29.47%
VOLKSWAGEN AG -3.44% 132.5 Delayed Quote.-24.82%
VOLVO -2.74% 133.25 Delayed Quote.-15.07%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news "Economy & Forex"
05:15pThe touristic activity of the tourism agencies and tour-operators in January-March 2020
PU
05:15pNATIONAL BUREAU OF STATISTICS OF REPUBLIC OF M : Distribution of elderly people in territorial profile
PU
12:35pUNECA UNITED NATIONS ECONOMIC COMMISSION FOR AFR : Central African development aspirations hampered by skills shortages
PU
12:20pEagles back to winning ways
PU
12:20pCAYMAN ISLANDS GOVERNMENT : Friday, 29 May Update
PU
11:48aAustria opposes current EU rescue, wants changes - finance minister
RE
11:10aProclamation on National Ocean Month, 2020
PU
11:10aPRESIDENT OF UNITED STATES : Remarks by President Trump on Actions Against China
PU
10:45aQuarterly Statistical Digest - May 2020
PU
10:45aPRESIDENT OF UNITED STATES : Proclamation on National Homeownership Month, 2020
PU
Latest news "Economy & Forex"