US subsidy rules may hit renewable energy unit of Germany's BayWa

Sept 23 (Reuters) - President Donald Trump's tax and spending bill could reduce the U.S. earnings of German agricultural supplies trader BayWa's BYWGnx.DE renewable unit, the company said on Tuesday, driving its share price lower.

"As a result of the so-called 'One Big Beautiful Bill Act', which significantly curtails the subsidies for renewable energies, BayWa r.e. AG is reviewing its long-term business planning and earnings expectations and may potentially revise them downwards," it said in a statement.

Shares in BayWa were down 3.9% at 0817 GMT.

The Trump administration's bill makes it harder to develop wind and solar energy projects in the U.S. by accelerating the phasing out of renewable energy tax credits.

It will take several weeks to assess the extent of the potential impact on its wind and solar business as well as possible countermeasures, BayWa said.

The Munich-based company has grappled with rising borrowing costs, forcing it to embark on a restructuring plan, including job cuts.

It still has a target to complete the restructuring by end of 2028, the company said.