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European firms poised for tariffs, plan supply chain

adjustments

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Tariffs of 25% on Canada, Mexico affect Europe indirectly

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Trump threatens EU with similar tariffs on cars, other

goods

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EU leaders urge talks, vow unity against potential US

tariffs

(Adds comments from Irish bank Permanent TSB in paragraph 13,

Kuehne und Nagel paragraph 18)

By Adam Jourdan, John Revill, Victoria Waldersee and Giselda

Vagnoni

LONDON, March 4 (Reuters) - European companies, from

Swiss chocolatiers to German car parts makers, are preparing

their "plan Bs" to adapt to U.S. trade tariffs that became a

blunt reality on Tuesday, with a second barrage specifically

targeting the region expected next month.

U.S. President Donald Trump imposed 25% tariffs on imports

from Mexico and Canada, along with a doubling of duties on

Chinese goods to 20%, moves which could upend nearly $2.2

trillion in two-way annual U.S. trade.

Many European companies, while not directly affected yet,

are being forced to scramble because of their exposure to North

America while a second barrage of tariffs in April looms, with

Trump threatening a 25% "reciprocal" rate on European goods.

Swiss chocolate maker Lindt & Spruengli is set to

ship to Canada directly from Europe rather than its factories in

the United States to avoid the impact of Trump's tariffs and any

countermeasures.

"The volumes that we source currently for Canada can all be

shifted to Europe," CEO Adalbert Lechner told reporters.

"So far, we have a Plan B to avoid these tariffs in Canada."

German tire and auto parts maker Continental AG,

which has plants in Mexico, said it was "monitoring" the

situation and would "optimize" its supply chain to get best

value for its clients.

"We are in talks with all of our customers. We cannot yet

say whether this tariffs issue could lead to production lines

being relocated," Continental chief financial officer Olaf

Schick told Reuters.

The firm has seven plants in Mexico, one of which is being

closed. Schick said 90% of its truck tires and half of car tires

sold in the United States were made there domestically, with the

rest imported mainly from Europe, but also from South America

and Mexico.

"Our position is that we cannot absorb additional tariffs.

As far as our suppliers are concerned: we generally source

locally," Schick said.

NEXT WAVE TO HIT EUROPE

While tariffs have dominated corporate America's discussions

for some time, European companies are now not becoming

increasingly concerned about potential tariffs impacting cars

and other exports in early April.

Cristiano Fini, president of Italian farmers lobby CIA, said

possible tariffs on Europe could cause "billions of dollars of

damage" to the Italian food sector, hitting producers of items

from Parma ham to Prosecco sparkling wine.

"Those exports to the United States are worth more than 2.4

billion (euros), a wealth for Europe as well," he said.

Irish bank Permanent TSB is assuming that the

European Union will be hit with slightly lower 10%-15% tariffs

on exports to the United States when calculating the capital it

needs to cover potential loan defaults, its finance chief said.

European leaders have looked to show unity and resolve in

the face of the threat of U.S. tariffs, which analysts fear

could dent the region's economic growth prospects.

"Germany supports the EU Commission's approach of working

with the U.S. government to find a negotiated solution,"

Germany's economy minister Robert Habeck said in a statement.

"But the EU will not be pushed around. If President Trump

imposes the announced tariffs on EU products, we will react with

unity and self confidence."

Some, though, see a silver lining.

Swiss logistic group Kuehne und Nagel told Reuters

in a statement that "complicated" global trade could play to its

strengths.

"We expect logistics and customs clearance costs to increase

in the short and medium term, especially at U.S. borders. We are

ideally equipped for this."