Weak dollar and U.S. tariffs drag down Dutch firms’ third-quarter earnings
The close ties between Dutch listed companies and the American economy have taken a toll this earnings season, according to Het Financieele Dagblad (FD). Many firms on the Amsterdam stock exchange have been hit in recent months by both U.S. import tariffs imposed under President Donald Trump and the weakening of the dollar against the euro.
Over the past weeks, most publicly traded Dutch firms released their third-quarter results. Lighting manufacturer Signify N.V. reported third-quarter sales of 1.4 billion euros, an 8.4 percent decline from a year earlier, and cut its full-year sales outlook after “weaker U.S. demand” hurt its professional lighting business. The company said dollar depreciation also weighed on reported sales. Markets punished the stock after the earnings announcement, according to Reuters.
Health-technology company Royal Philips N.V. also illustrates the challenge. While its third-quarter 2025 results showed comparable sales growth, the firm has in prior quarters revised margin guidance and seen share weakness after citing tariff costs and softer demand in several regions.
The U.S. currency has lost value rapidly this year, making it one of the biggest drags on results for Dutch companies with major operations in the United States. When the dollar falls against the euro, profits earned in the United States translate into fewer euros.
At the same time, products priced in euros become more expensive for American consumers and businesses, which can reduce imports from the eurozone. Analysts at Deutsche Bank warned in the summer that a 10 percent weaker dollar could lower profits for European companies by 2 to 3 percent.
