In part one, I used the AlphaSense platform to explore how U.S. companies are reacting to Trump’s policy regarding steel tariffs. Now, let’s dig into the reactions from companies outside the U.S.
Using the AlphaSense PDF summary feature, I can quickly pinpoint several interesting comments, such as the following from Triton International, a global lessor of container ships.
Triton International was not alone in questioning how much of an impact the tariffs are going to have on the global economy. Seafarms, an Australian agri-company has also mentioned in their economic outlook that the impact on the global economy should not be outsized. They were joined by the ECB, which in one of its monetary policy updates, noted that the targeted products do not constitute a large part of the U.S. or world trade.
Other players noted that their impact should be limited due to domestically sourced products. This was the case with several companies, including Irish-based Johnson Controls International, a global manufacturer of automotive parts, electronic and HVAC equipment, as well as Sensata, a British electronic manufacturer or Honeywell Automation, which is listed in India.
Others like the Canadian Linamar Corp., the second-largest automobile parts manufacturer in the country, think they can pass the increased cost onto the customer.
Renold PLC, a British industrial manufacturer, could stand to benefit, because U.S. steel manufacturers could increase investment in their infrastructure. The same goes for Advanced Metallurgical Group, which notes that as the U.S. will increase its steel production, they will be able to increase its sales of vanadium, used in one of the steel alloys.
However, some companies could feel the pressure. ADF Group, a Canadian steel parts manufacturer, said it lost three new projects in the U.S. due to the recent developments.
Nippon Steel, a Japanese steel producer, ended their comments on a more relaxed note. In their recent investor presentation, they mentioned that the price volatility could weaken and demand remain firm, because Chinese President Xi maintained he will lower tariffs and push to open the Chinese economy more, which could help the Asian players balance the impact.
Overall, it seems that the global players do not see immediate challenges stemming from the policy.
Despite the significant amount of discussion that the Trump administration caused by the tariffs, the actual impact of the policy might be less severe for companies outside of the country due to various factors, such as supply chains or overall size of the U.S. steel trade.
Tariffs are a complex topic, but with AlphaSense, I reduced my initial research from hours to just minutes. By searching with just two keywords, I identified players that might have large exposure to the policy, and I’m able to stay on top of what’s happening through my AlphaSense saved search alerts.