BUT EUROPEAN MANUFACTURERS ARE STEELED FOR PAIN

German engineering group Siemens said threats to free trade by tariffs are a concern and sees potential clouding on investment dynamics because of geopolitical tensions.

German car maker BMW started building its X3 model in China, ending its imports from its plant in Spartanburg, South Carolina, and raised prices on the X5 and X6 models to compensate for the tariffs. The company said earlier that it would be unable to “completely absorb” a 25 per cent Chinese tariff on imported models that have been made in the United States.

Electronic equipment manufacturing company Actia Group, based in France, maintains its goal of moderate growth this year. However, it says the tensions may limit the increase in profitability year-on-year.

Fiat Chrysler cut its outlook for this year, hurt by a weaker performance in China. Its operating profit for the second quarter was negatively affected by Chinese import duty changes, it said.

“If the trade war escalates we are more concerned about the consequences that it can have on global macro environment,” STMicro said. The direct impact of trade war risks were currently negligible, it added.

Sweden’s Electrolux said US tariffs announced last month would have an impact of $10m-plus this year. In the third quarter. It expects raw material costs to rise by 500m Swedish kroner (Dh200.9m)

Swedish lock maker Assa Abloy expects a further increase in steel prices in the second part of the year in the US, partly because of new import tariffs.