Local production for local markets lessens direct tariff impact for BASF
Chemicals group BASF has reported revenues of €17.4 billion for the first quarter of 2025, a fall of 0.9% compared to the same quarter last year.
Sales were flat in most regions, but there was growth of 8.1% in China, with revenues there reaching almost €2.3 billion. In North America, BASF achieved revenues of €5.1 billion, but this figure represented a decline of 5% year on year.
Its materials segment, which includes its monomers and performance materials products, brought in just over €3.4 billion for the quarter, up by 0.2% year on year.
The group’s chief finance officer, Dr Dirk Elvermann, said BASF had a policy of producing locally for local markets. “In these challenging times, this makes us more resilient than others and is a competitive advantage,” he added.
As an example, the group pointed out that 80% of its sales revenues in the US in 2024 came from products that it had manufactured in the US.
“This is the reason why the direct impact of tariffs on BASF is likely to be limited,” Dr Elvermann said. But he also warned about indirect impacts resulting from market uncertainty and changes in customer demand for consumer goods.
