Trump’s additional duties hit many Finnish companies

Money The Finnish company will take a hit if the United States introduces a larger import duties for European companies.

In particular, forest industry companies and consumer product companies are the worst in the line. This is what the chief analyst at OP judged Antti Saari.

On Thursday, OP published a theme report in which it has looked at the impact of US import duties on Finnish companies. It lists about twenty Finnish listed companies, for which the fires would have a negative impact.

According to the island, the impact assessment has been assumed that, in addition to the steel and aluminum bulls that came into force on Wednesday, the United States would introduce all imports of imports.

President Donald Trump has threatened EU countries, among other things, with 25 %. A decision on additional duties is expected in April.

OP’s assessment does not have numerical impact assessments, but the investigation and effect of customs in general, as Trump’s plans are constantly living.

“For most companies, the impact would be reasonably moderate, as companies are able to redesign their production chains. A greater impact may be on national economies in different countries if companies are transferring their production, ”Saari estimates.

Others A bigger impact on fires could have forest companies, Stora Enso and Metsä Board, which take cardboard from Europe to the United States. According to the island, duties would weaken their competitiveness in the United States in relation to local producers.

Customs would force forest companies to find new markets for part of the board. Additional difficulties could be if China’s duties were to increase its imports to Europe. It would tighten competition and lower prices.

The United States is also an important market for engineering workshops in the Finnish export industry. According to OP, about 15-35 % of the industry’s turnover comes from the United States, and almost all companies have exports from Europe.

OP lists Cargotec, Kalmar, Konecranes, Metso, Valmet and Wärtsilä.

Most of them have local assembly activities, but duties would hit their components from Europe. However, the island points out that most of the companies’ competitors are in the same situation.

The biggest importance in the United States is the net sales of Kalmar, Konecranes and Cargotec. They would also suffer from the silence of freight traffic caused by customs.

The steel companies Outokumpu and SSAB will also rise to the list of OP sufferers, although they have estimated that they will benefit from the steel and aluminum backpacks now set. The disadvantages come through the bend. For example, duties would weaken the demand for the automotive industry for them.

According to the island, there is also a risk that some of the previously exported steel exported to the United States ends up increasing Europe’s oversupply and lower prices there.

From consumer product companies At least Fiskars, Harvia and Rapala, for whom the US market is important, is on the line. Some also have local production, but also a lot of exports that are subject to customs.

For example, Harvia, who has benefited from the US sauna bum, manufactures her stove, especially in Europe, even though she makes saunas on site.

Rapala also manufactures most of its lures for sale in the United States in Europe. Many Fiskars products are manufactured in China, for which Trump has also hit new customs.

However, these companies might be able to transfer customs costs to customer prices, at least in part, as many competitors are in the same situation.

Nokia The United States is an important market. The United States will become 28 % of the company’s turnover.

Nokia has its own production facility in the United States, which manufactures network infrastructure equipment, but the manufacturing of cellular networks there is less.

Other companies suffering from OP’s list include Kempower, Ponsse, Orion, Revenio and Bittium.

Although Kempower, for example, has a configuration plant and Ponsse has a factory behind the racket, the duties would hit their Euopoli and Finland components.

Revenio, Orion and Bittium, on the other hand, manufacture their products to the United States all in Europe.

In addition to the sufferers, OP also lists one of the benefits, the packaging manufacturer Huhtamäki. Its products sold in the United States are mainly made from local ingredients.