Lanxess Gains as US Stockpiles Ahead of Trump Tariff Threat
By Rafal Wojciech Nowak
(Reuters) - German speciality chemicals maker Lanxess on Thursday said U.S. customers had rushed to stockpile its products, joining consumers and companies hoping to get ahead of potential trade tariffs threatened by U.S. President Donald Trump.
The company ships goods into the United States for firms including Germany's Bayer and fragrance makers Givaudan and Symrise, according to U.S. import filings reviewed by Reuters.
Trump has since his inauguration imposed a variety of blanket tariffs on several countries and goods, and threatened further levies going forward.
Lanxess, which on Thursday forecast 2025 core earnings below market expectations, said it had seen slightly lower prices in the fourth quarter mostly due to input cost deflation, but increased sales volumes for most business units as customers rushed to place orders.
In early November, it had said potential U.S. protectionist policies under Trump would benefit its business, given its strong position with about 2,300 employees and around 20 production sites in 14 U.S. states and Ontario, Canada, according to its website.
Tariffs tend to be inflationary because they raise the cost of imported goods, prompting businesses to either absorb the higher expenses or pass them on to consumers through price increases.
The fear of rising prices often fuels stockpiling behaviour, particularly of non-perishable goods like chemicals and medical supplies, as companies buy goods before costs escalate further.
(Reporting by Rafal Wojciech Nowak in Gdansk; editing by Richa Naidu)
