IBEX 35 Companies Eye BRICS Tariff Risks

Spain’s main stock index, the IBEX 35, closed down 1.48% in Friday’s (4 July) trading session amid renewed fears that the United States could impose tariffs. Adding to the uncertainty, US President Donald Trump posted a comment on Truth Social yesterday, Sunday,  6 July, declaring that any country aligning with BRICS policies would face an additional 10% tariff.

Some Spanish companies in the IBEX 35 maintain business ties with the BRICS bloc, which includes Brazil, Russia, India, China and South Africa. Trump’s comments came during the BRICS summit held in Rio de Janeiro this weekend, where member states expanded to eleven with the addition of Egypt, Iran, the United Arab Emirates, Ethiopia, Saudi Arabia and Indonesia.

While it remains unclear whether the US will proceed with these measures, the federal government has already delayed a new round of tariffs until 1 August. For now, Spanish multinationals with operations in BRICS countries are closely monitoring the potential introduction of extra tariffs in those emerging markets and any spillover effects for companies active in EU-US trade. (Source: Finanzas)

Inditex Shares Slide YTD

In the midst of a year marked by US tariff uncertainty, Inditex [ITX.E] shares have fallen 12.61% year to date (YTD). Since Thursday (3 July), the stock has declined from EUR 44.43 to EUR 43.35 at today’s open.

Among BRICS markets, Inditex has a moderate but diversified presence. As of 31 January 2025, the company operated 7 stores in South Africa, 54 in Brazil and 134 in continental China, according to its latest consolidated results. 

To reduce exposure to trade disruptions, the group is working to diversify its sourcing and prioritise proximity supply chains that can help cushion potential volatility, according to Gorka García-Tapia, director of investor relations.

Acerinox Weights US Tariff Gains, BRICS Risks

Acerinox [ACX.E] has seen its share price decline 2.5% over the past five days to EUR 10.55. YTD, however, the Spanish steel producer remains up approximately 12.59%, although gains have lost momentum in recent sessions.

In its 1Q25 report, the company said tariffs should be positive for Acerinox overall, although they are creating additional uncertainties. While Acerinox operates several plants in the United States, it also owns Columbus Stainless, a facility in South Africa, one of the core BRICS countries.

Santander and Mapfre Highlight Brazil's Profit Dependence

BRICS countries have expressed concern that new US tariffs could weigh on their economies. Financial services remain core to economic growth across these markets, and two Spanish IBEX 35 companies have significant exposure in Brazil.

For Santander [SAN.E], Brazil generated EUR 3.8 billion in pre-tax attributable profit in 2024, out of a total group result of EUR 19.0 billion. In the case of Mapfre [MAP.E], Brazil contributed EUR 255.1 million in net profit from its insurance operations last year, while the division as a whole produced EUR 842 million.

Over the past five trading days, Santander shares have risen approximately 0.5%, while Mapfre has gained around 0.2%.

Conclusion

Spanish IBEX 35 companies with operations in BRICS markets are approaching the second half of 2025 against a backdrop of trade policy uncertainty. Inditex, Acerinox, Santander and Mapfre each maintain varying degrees of exposure that could be influenced if new US tariffs are implemented.

So far, share price reactions have been limited, as details of the potential measures remain under discussion. This month, with the 1 August deadline approaching, the coming weeks may provide more clarity on whether the proposed tariffs will proceed and how companies with ties to BRICS economies plan to respond.

* Past performance does not reflect future results.