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Signify can cope with possible US tariffs, CEO says
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Signify can cope with possible US tariffs, CEO says
Jan 24, 2025 2:04 AM

AMSTERDAM, Jan 24 - Dutch lighting company Signify

does not expect a big financial impact from possible

new U.S. import tariffs, its chief executive said on Friday.

Signify, like its competitors, has significant production in

China and Mexico, markets which U.S. President Donald Trump has

targeted for possible tariff increases.

"When we look at our Chinese imports to our U.S. business,

it's less than 20% of what we import," Eric Rondolat said on a

call with analysts after the company reported fourth quarter

earnings.

"We believe we will find a way to compensate through

footprint (changes) and price increases," he added.

Signify is the largest maker of lights globally by sales,

but its market capitalisation is far smaller than that of its

top U.S. rival, Acuity Brands ( AYI ).

In October, before Trump's election, Rondolat said the

company would consider shifting more of its assembly operations

out of China to markets such as India and Mexico if necessary,

though it would likely always purchase some components in China.

Rondolat said on Friday it was difficult to know how any new

tariffs would play out, but that the company had navigated

similar moves in 2018 and new tariffs could even present an

opportunity.

"We have an important part of what we produce in Mexico, but

less probably than other competitors ... we think our footprint

is better positioned," he said.

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