Why Siemens Stock Slumped Today

Shares in German industrial giant Siemens (OTC: SIEGY) were down by more than 6% in trading as of 3 p.m. ET Thursday due to the tariffs imposed on foreign countries by the Trump administration. As a global company with interlinked supply chains that span the globe, Siemens is notably exposed to tariff actions and trade conflicts.

Siemens and tariffs

Siemens is a German company, but its operations are global. In fact, 31% of its revenue came from the Americas (26% from the U.S.) in 2024, with 46% from Europe and the rest from Asia. In addition, its manufacturing and operational footprint is global too, with 25% of its factories in the Americas and 48% in Europe, and the rest in Asia.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

The ability to produce and sell locally is a major plus in dealing with tariff actions, and should leave Siemens relatively well-placed to deal with trade disputes. Moreover, Siemens is a heavy investor in the U.S., having recently bought industrial simulation company Altair for an enterprise value of $10 billion, and literally on the day the tariffs were announced, announced itself a deal to buy life sciences research and development software company Dotmatics for $5.1 billion.

Image source: Getty Images.

What's next for Siemens?

That said, Siemens' supply chain still involves moving products around the globe, and its costs are highly likely to be negatively impacted. Moreover, as an industrial company exposed to industrial software, automation, smart buildings/infrastructure, and transportation, any slowdown in the global economy caused by trade disputes will hit Siemens' orders.

Still, at this stage, it's too early to see the ultimate impact and how long-lasting the tariffs will be. Don't panic.

Should you invest $1,000 in Siemens Aktiengesellschaft right now?

Before you buy stock in Siemens Aktiengesellschaft, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Siemens Aktiengesellschaft wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $676,774!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 1, 2025

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.