BERLIN (Reuters) -BASF said on Wednesday it expects demand for chemical products to grow less strongly than previously expected due to a deteriorating global economy.
The volatility caused by U.S. President Donald Trump’s tariffs policy and the general unpredictability of the U.S. government’s decisions were fueling uncertainty and had an indirect effect on the German chemicals giant.
“Thanks to our global strategy of serving customers through local production in their respective markets, the direct impact of the tariffs remains limited,” said BASF while publishing its final second-quarter figures.
“However, there are indirect effects, particularly associated with demand for our products and their prices.”
BASF had lowered its full-year outlook due to weaker-than-expected global economic growth and reduced demand for its chemicals due to U.S. tariffs earlier this month.
In addition, margins remain under pressure due to continued high product availability on the market, added BASF.
The United States and European Union agreed a trade deal on Sunday that would ensure there would be no tariffs from either side on certain chemicals, though it remains unclear which ones in particular would be exempt.
(Reporting by Patricia Weiss and Miranda Murray, editing by Kirsti Knolle)
