Shares in German industrial giant Siemens (SIEGY 0.25%) were down by more than 6% in trading as of 3 p.m. ET Thursday due to the tariffs imposed on foreign countries by the Trump administration. As a global company with interlinked supply chains that span the globe, Siemens is notably exposed to tariff actions and trade conflicts.
Siemens and tariffs
Siemens is a German company, but its operations are global. In fact, 31% of its revenue came from the Americas (26% from the U.S.) in 2024, with 46% from Europe and the rest from Asia. In addition, its manufacturing and operational footprint is global too, with 25% of its factories in the Americas and 48% in Europe, and the rest in Asia.
The ability to produce and sell locally is a major plus in dealing with tariff actions, and should leave Siemens relatively well-placed to deal with trade disputes. Moreover, Siemens is a heavy investor in the U.S., having recently bought industrial simulation company Altair for an enterprise value of $10 billion, and literally on the day the tariffs were announced, announced itself a deal to buy life sciences research and development software company Dotmatics for $5.1 billion.
Image source: Getty Images.
What's next for Siemens?
That said, Siemens' supply chain still involves moving products around the globe, and its costs are highly likely to be negatively impacted. Moreover, as an industrial company exposed to industrial software, automation, smart buildings/infrastructure, and transportation, any slowdown in the global economy caused by trade disputes will hit Siemens' orders.
Still, at this stage, it's too early to see the ultimate impact and how long-lasting the tariffs will be. Don't panic.
