Investing.com — President Donald Trump’s comments on potential 25% tariffs targeting imports from Canada and Mexico have sparked concerns among European companies that have supply chains in these two countries, but a larger revenue than asset exposure to the US.
In a Thursday note, Bank of America (BofA) highlighted dozens of European companies particularly vulnerable to these tariffs due to their supply chain and revenue dependencies.
Among these is Stellantis (NYSE:STLA), the Italian automotive 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 tangible asset exposure in the US.
Similarly, BMW (ETR:BMWG), another automotive giant from Germany, has 18 supply chain links in Canada and derives 26% of its revenue from the US, while its asset exposure to the US sits ast 18%.
National Grid (LON:NG), a UK utilities firm with a €58 billion market cap, has a significant US footprint, with 50% of its assets and 54% of its revenue tied to the region. Although its tangible supply chain links in Mexico and Canada are minimal, its heavy US exposure makes it highly susceptible to tariff disruptions.
In the industrial sector, Switzerland’s Holcim (SIX:HOLN) relies on NA markets for 39% of its revenue, alongside 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 targeted countries are negligible.
Other notable mentions include Tenaris (BIT:TENR), an Italian energy firm, with 9 supply chain links in Canada and Mexico, and 52% of its revenue tied to North America. Moreover, Denmark’s Vestas Wind Systems (CSE:VWS) has 14 supply chain links in Canada and derives 37% of its revenue from the NA.
Even the healthcare sector shows exposure. Switzerland-based Lonza Group AG (SIX:LONN) maintains four Canadian supply chain connections while generating 32% of its revenue from the US.
German chemicals firm Brenntag AG (ETR:BNRGn) has both Canadian and Mexican supply chain links, alongside 36% US revenue exposure, while Switzerland’s food and beverage giant Nestle SA (SIX:NESN) operates 8 Canadian and 10 Mexican supply chain links and earns 35% of its revenue from the US.
Other companies listed by BofA are AstraZeneca (NASDAQ:AZN), ABB Ltd (SIX:ABBN), Mercedes Benz Group AG (ETR:MBGn), Volkswagen (ETR:VOWG_p), Epiroc (ST:EPIRa), and several more.
