The group of supermarkets Ahold Delhaize and Siemens Energy said Wednesday that tariffs on US imports will lead to higher prices when moving costs, while the manufacturer of special steels Vestalpine urged Brussels to retaliate for tariffs threatened by Donald Trump Trump .
Executives around the world strive to compensate for the cost of US president’s decision to impose 25% tariff Consumer goods and energy.
On Wednesday, Trump’s commercial advisors were finalizing the plans for reciprocal tariffs that the US president promised to impose on all countries that charge tariffs on US imports, which increased the fears of an extension of the global commercial war.
The trade ministers of the 27 countries of the European Union prepared to meet later by videoconference to determine their response after the president of the European Commission, Ursula von der Leyen, said that the measures against the block “will not remain without answer”.
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Trump Tariff Problems
Siemens Energy expects to suffer an impact on rates, since its network in Mexico is the most exposed to additional positions in the supply of electrical equipment. The general director, Christian Bruch, said he could not quantify the impact, but that price increases would be transferred to customers, echoing the comments of other executives in recent weeks. Trump’s commercial policy has dominated telephone conferences with media and investors during the quarter quarter results.
Ahold Delhaize supermarket group expects US tariffs on Mexico and Canada to cause price and vegetable price increases, as well as paper products, the group’s general director, Frans Muller, told Reuters. The company, which manages US chains such as Food Lion, Stop & Shop and Hannaford, is considering obtaining more products from the west coast and states such as Florida, in case Mexican products become less competitive, Muller added.
“If there were tariffs on Mexican fruits and vegetables or Canadian paper products, then we would have an inflationary effect on those categories,” Muller said in an interview. European actions expanded their profits and reached a historical maximum on Wednesday, showing some resilience to the uncertain world commercial context.
Barclays European actions strategists said Wednesday that for now tariff threats seem more a negotiation tool, although there is still a certain risk for actions exposed to tariffs and currencies, such as cars and basic consumption products.
“Both could see some relief if the tariffs are not as bad as they were feared,” they said. Banco’s approximate calculations suggest that European companies could suffer an impact between 5 and 10 percent on their profits due to 10 percent tariffs on the “worst case.”
RETALIATION
Steel manufacturers in Europe are concerned about a possible new cheap steel avalanche in the EU, as happened in 2018 under Trump’s first presidency. The Austrian special steel manufacturer Voestalpine asked the European Union to take immediate countermeasures and begin negotiations with the United States on tariffs.
The French steel manufacturer Abam on Tuesday asked Brussels to intervene to stop imports if US tariffs on all imports of steel and aluminum drive companies to send more to the European Union.
The president of Foxconn de Taiwan said that the largest electronic manufacturer by the world’s contract and the main Apple iPhone manufacturer can adjust its production based on the new US tariffs.
With Reuters information.
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