Husqvarna reworking supply chain to offset tariffs, CEO says
(Reuters) -Sweden's Husqvarna is reworking its supply chain to lessen the blow from global trade tensions as the U.S. considers steep hikes in tariffs on European imports, the company's CEO Pavel Hajman told Reuters.
Around two-thirds of Husqvarna's U.S. sales are tied to imported products, with roughly half of those coming from Europe and the rest from China and other countries.
"We are, of course, worse off because we have two-thirds being imported into the U.S., irrespective of whether it's China or Europe," Hajman said.
U.S. tariffs on EU goods currently stand at 10%, but the White House has floated the idea of raising them to as high as 30%.
Hajman said such a move would not be good for Husqvarna and urged a constructive dialogue between Washington and Brussels.
The group is increasingly concerned that Europe could be pulled deeper into Washington's trade clampdown, putting Husqvarna at risk on both its Asian and European supply routes.
To cushion the impact, Husqvarna has started shifting production of certain products out of China into its European factories.
It is also rerouting some Canada-bound goods away from U.S. distribution hubs to avoid getting caught in the crossfire from the Washington-Ottawa trade friction.
Hajman said the company is working with suppliers on price negotiations to soften the impact of tariff-related cost inflation.
The tariffs have come on top of other margin headwinds which the company is facing, including currency swings and rising raw material costs.
In response, Husqvarna implemented measures including plant closures and focusing on higher-margin products like watering systems and robotic mowers.
Husqvarna's robotic mower sales grew 15% in the quarter even as competition from emerging Chinese rivals intensifies.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
24 minutes ago
- Yahoo
Report – Atalanta Will Accept €40M Offer For Inter Milan & Atletico Madrid Target But Only From Clubs Outside Serie A
Atalanta would accept bids worth €40 million for Inter Milan and Atletico Madrid target Ademola Lookman, but only from clubs outside Serie A. This via Italian outlet FCInterNews. La Dea will not, however, accept a bid of that size from Inter. Yesterday, Inter Milan really made their move for Atalanta forward Ademola Lookman. The Nerazzurri made an offer worth €40 million. They offered Atalanta a loan containing a purchase obligation, which would be at that fee. However, La Dea have rejected that first bid from Inter. They want a higher fee, with reports suggesting that they could hold out for €50 million. Atalanta Would Accept €40M Bids For Ademola Lookman – But Only From Outside Serie A However, Atalanta would reportedly accept offers of €40 million for Ademola Lookman. Just not from clubs in Serie A. The Bergamo-based club would, however, be ready to sell the Nigerian international for around that fee, if it is to a club abroad. Atletico Madrid are also keen to sign Lookman. Therefore, Atalanta are reportedly hoping to sell the 27-year-old to the Colchoneros instead. Their preference is to sell to a club abroad. Therefore, Atletico could have a boost over Inter to try and sign Lookman.
Yahoo
24 minutes ago
- Yahoo
Donald Trump's tariffs are pulling in billions, but is it really a win?
Data rolling in on the collection of tariffs by the United States suggests the trade war initiated by President Donald Trump is already generating significant revenue for the U.S. Treasury. More than US$26.6 billion was brought in for June, nearly quadruple the US$7.3 billion raised in January. More than US$108 billion has been collected in the first nine months of fiscal 2025, nearly double the total raised at this point a year earlier. The increase in tariff revenue began to spike in April when customs duties (after any refunds) hit US$15.6 billion. By May, the haul had jumped to US$22.2 billion. U.S. Treasury Secretary Scott Bessent has said the tariffs — as low as 10 per cent for some countries and at least 50 per cent for China and some Canadian imports such as steel and aluminum — are on track to pull in US$300 billion. It's a sizeable haul for a president who has faced criticism for on-again, off-again tariff threats that earned the nickname TACO — short for Trump Always Chickens Out. While the tariff data so far is being heralded by the Trump administration as a win, policy and trade observers aren't as sure it signals a long-term victory. 'On balance, I would expect tariff revenue to be higher in the short run than out in the medium to long run,' said Marc-André Pigeon, an assistant professor at the University of Saskatchewan's graduate school of public policy. Recession risk He said a number of things could cause a drag on the increased revenue, some desirable to the Trump administration and others not. More re-shoring of industry, which the administration wants, would cause the figures to drop. On the negative side of the ledger, so would an economic downturn, which some economists are predicting as a result of the trade policies, and a stronger U.S. dollar relative to other countries' currencies. Several countries including Canada are in the midst of talks aimed at securing more favourable trade terms that would offset the tariffs imposed on them. If successful, it would mean lower revenue for the U.S. government over time, but there is no assurance Trump will yield. Prime minister Mark Carney told reporters this week that securing a trade deal with the U.S. without some tariffs is unlikely. Teresa Cyrus, an associate professor and chair of the Department of economics at Dalhousie University in Halifax, suggested the US$300 billion tariff haul Bessent is touting for the year may not bode well for further deals with Trump. 'Perhaps Bessent is hinting that trade deals are unlikely?' she said in an email. Global trade shuffle In the past, sustained steep tariffs have not come without upheaval in trading partners and supply chains as countries seek alternatives trading partners and buyers turn to jurisdictions where they can pay the least for supplies — and that, too, could have an impact on U.S. tariff-based revenue. William Pellerin, a partner in the international trade group at law firm McMillan LLP, said some of that is already happening. 'We expect that many global companies will (look) for ways to get their products from countries with the lowest tariffs,' he said. 'This kind of supply chain reshuffling is already happening in Canada, and we believe it will happen even more in the United States.' A major plank in Trump's tariff campaign, which was unleashed almost immediately after he took office in January, was to bring industry and manufacturing back to the United States. But it was also pitched as a way to bolster U.S. government revenues to help pay for tax cuts in a major piece of legislation he dubbed 'one big beautiful bill.' The latest estimate from the Congressional Budget Office is that the legislation, which was signed by Trump and became law on July 4, will increase deficits by $3.4 trillion over the 2025 to 2034 period. Robert Wolfe, a professor emeritus at Queens University, whose research focus is global trade, said the tariffs suggests an 'incoherence' in longterm policy goals, despite the positive early data. 'Either tariffs are a source of revenue, or they are a means to protect American industry — beyond the short term they can't be both,' he said. 'If imports decline in response (to) the tax, so will revenues.' • Email: bshecter@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24 minutes ago
- Yahoo
Grubhub Owner Wonder Seeks Up to $500 Million to Refinance Debt
(Bloomberg) -- Grubhub Holdings Inc.'s owner Wonder has approached lenders including private credit firms as it seeks to raise between $400 million and $500 million to refinance the food delivery company's existing debt, according to people with knowledge of the matter. The Dutch Intersection Is Coming to Save Your Life Mumbai Facelift Is Inspired by 200-Year-Old New York Blueprint Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests LA Homelessness Drops for Second Year Manhattan, Chicago Murder Rates Drop in 2025, Officials Say Wonder is seeking to include a payment-in-kind feature in the new financing, which would allow the company to defer at least a portion of its interest payments until the debt's final maturity, said the people, who asked not to be identified discussing private information. It is discussing an interest rate of around 13% with potential investors, which would be inclusive of the PIK component, according to one of the people. Private credit lenders typically offer PIK structures to fast-growing tech companies that have predictable revenue streams but need to burn through cash to acquire new customers or develop new products. Representatives for Grubhub and Wonder declined to comment. Private credit lenders have considered financing proposals for Grubhub in the past but a deal was never completed, some of the people said. Grubhub has $500 million of notes outstanding, which it issued in 2019 with the help of investment banks at a coupon of 5.5%, according to data compiled by Bloomberg. Wonder Group Inc. acquired Grubhub last year from Just Eat for about $650 million, paying $150 million in cash and assuming the $500 million of existing debt. The food delivery industry has faced pressure particularly in New York City, after the city placed a cap on fees meal-delivery companies could charge restaurants. Grubhub, Doordash Inc. and Uber Technologies Inc. recently agreed to settle a lawsuit over the caps in exchange for changes to the law that the city is expected to submit by the end of the year. What the Tough Job Market for New College Grads Says About the Economy How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All Godzilla Conquered Japan. Now Its Owner Plots a Global Takeover A Rebel Army Is Building a Rare-Earth Empire on China's Border Why Access to Running Water Is a Luxury in Wealthy US Cities ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
