With Republican candidate Donald Trump returning to the White House, business leaders worldwide are adjusting to a new reality characterized by increased U.S. protectionism, higher tariffs, and stricter immigration policies. In recent months, CEOs have been cautious about potential changes, but are now addressing this new order in meetings and earnings calls, as investors try to assess the impact of Trump's election victory.
During a quarterly earnings call of Norwegian chemical storage and transportation company Odfjell SE, an analyst questioned the implications of Trump's presidency on their market. CEO Harald Fotland warned of increased protectionism possibly affecting U.S. exports. He noted that Odfjell’s activities in the U.S. might slightly decrease and expected some parts of the Inflation Reduction Act, including green energy investment incentives, to be repealed. While this could be detrimental to the planet, it might benefit Europe as the law posed challenges for the region.
Japanese automaker Honda (HMC, Financial) has also been considering tariff issues. Executive Vice President Shinji Aoyama mentioned that new tariffs on cars imported from Mexico to the U.S., as advocated by Trump, would have a significant impact, which the company cannot ignore.
In Tokyo, Honda's shares declined, while Tesla, led by Trump's supporter Elon Musk, saw a surge in U.S. pre-market trading. In Germany, concerns over potential increases in car import tariffs led to a decline in stocks of automakers, including BMW and Porsche. Moritz Schularick, Director of the Kiel Institute for the World Economy, described the election as marking the beginning of the "most challenging economic moment in post-war German history."
Some executives are adopting a diplomatic tone. When asked about the impact of Trump's presidency on Swiss-Belgian chocolate maker Barry Callebaut AG, CEO Peter Feld stated that the company would continue serving U.S. customers, implying that leadership change would not alter their business.
Jeremy Townsend, CFO of Marks & Spencer, mentioned during an earnings call that the British retailer had effectively hedged against Trump’s election. Similarly, executives at German medical imaging equipment manufacturer Siemens Healthineers AG outlined their contingency measures. The company's equipment is widely used in American hospitals.
CEO Bernd Montag highlighted their strategic position regarding U.S.-China trade tariffs, emphasizing the advantage of having dual factories. This setup allows them to ship domestically within China and from the U.S. and Europe to the U.S. Montag noted the company’s balanced employment strategy, with an equal number of employees in the U.S. and Germany, ensuring stable trade operations.
