Tariffs targeting Europe would in principle also affect Revenio, whose devices are made in Finland and Italy. Trump has promised these, but the magnitude has not yet been shouted out for Europe. Of course, there is room for maneuver here, because Revenio has a US company (its own sales organization) and, as I understand it, transfer pricing is used there. I am not a tax lawyer, but as I understand it, there are various possible ways in transfer pricing. Lower price to the US, less customs duty, higher profit in the US - tax rate roughly the same. And then there are different pricing models for software and so on. It’s quite a puzzle for the CFO.
If large (all-encompassing) tariffs were imposed on Europe, I would consider it fundamentally negative for Revenio as well, but it doesn’t go one-to-one with the tariff percentage. So far, the development “under Trump” has been positive, as the dollar has strengthened and the same amount of dollars translates into a larger euro-denominated profit. Dynamic effects are always tricky - will customers hiccup if prices are raised and will the competitive dynamics change? My interpretation is that there shouldn’t be much drama from this, unless the European tariffs were something crazy.
Certainly a theme that will be examined and asked about in connection with the results.