ASML Shares Slide After CFO Highlights Tariff-Driven Uncertainty For 2025

ASML Holding NV ASML CFO Roger Dassen explained the impact he expects the tariffs to have on the company in 2025 during an analyst call.

What Happened: On Tuesday, following ASML’s first-quarter earnings, Dassen answered questions regarding the tariffs and their impact on the company’s performance.

While stating that the situation was still quite dynamic, Dassen outlined the potential fallout that he foresees across four key areas of the company's supply chain.

The first category he says is the tariffs imposed on complete system shipments into the United States. Followed by tariffs on the parts and tools required for field operations within the U.S., which is the second category.

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Third is tariffs on the material imports that it needs to manufacture in its U.S.-based facilities. Dassen notes that the company does “have some manufacturing capability in the US. So anything related to that would be the third category.”

Finally, the fourth category pertains to the reciprocal tariffs imposed by other countries on ASML’s shipments from the United States.

Dassen then mentions the extent to which the tariffs will have an impact on global GDP and on total market demand as another factor to consider. In the end, however, he mentions that the company is doing all it can to ensure that the impact on its finances is “as limited as possible.”

Why It Matters: According to ASML’s 2024 annual report, the company generates a bulk of its sales in China, South Korea, Taiwan, and Japan, at 36%, 23%, 15%, and 4%, respectively.

These are all countries on which the U.S. has imposed reciprocal tariffs, and while tariffs on all but China are paused, analysts such as Ben Barringer of Quilter Cheviot believe the impact will be “widespread,” before adding that it was still too early to tell the kind of effect the company will have to CNBC’s Squawk Box Europe.

ASML posted a better-than-expected first-quarter performance yesterday, but net bookings witnessed a slowdown, coming in below consensus estimates.

Price Action: The stock is down 4% in premarket trading on Wednesday, and is down over 30% in the past year.

According to Benzinga’s Edge Stock Rankings, ASML Holdings scores well on growth but falls short on momentum and value. The stock is not favorable for the short, medium, or long term. Want more insights like this for all stocks? Sign up for Benzinga Edge today.

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