ArcelorMittal expects $150 million in financial losses from US tariffs

Global mining and steel company ArcelorMittal has raised its forecast for expected financial losses from US tariffs and now estimates them at $150 million in 2025. This is $50 million more than the company predicted in February. In response, the world’s second-largest steel producer is strengthening its manufacturing presence in the US to minimize the impact of restrictive trade policies. This was reported by Reuters.

“What we supply to the United States from Canada is high value-added material that cannot be easily replaced,” said ArcelorMittal CFO Genovino Cristino.

According to him, the company seeks to maintain its market share, support margins, and adapt to new conditions, in particular by sharing tariff costs with customers and optimizing expenses.

A key step was the expansion of assets in the US. In June, ArcelorMittal completed the acquisition of Nippon Steel’s 50% stake in the Calvert joint venture, taking full control of the Alabama plant. A new electric arc furnace with a capacity of 1.5 million tons per year has already been put into operation there. It produces low-CO2 steel, particularly for the automotive industry.

In addition, the company signed a seven-year agreement with Nippon Steel and U.S. Steel to supply slabs from the US. Under the terms of the contract, ArcelorMittal will receive an average of 750,000 tons of slabs per year, smelted and cast in the US. As a result, approximately half of Calvert’s production will meet the “U.S. melted and poured” requirements, allowing it to avoid additional tariffs.

The rest of the raw materials will continue to come from Brazil and Mexico. ArcelorMittal believes that expanding local production will help reduce sensitivity to trade risks in the US market.

As GMK Center reported earlier, ArcelorMittal reduced steel production by 0.3% in 2024 compared to 2023, to 57.9 million tons. Iron ore production for the period increased by 0.9% y-o-y, to 42.4 million tons. Steel shipments to customers during this period amounted to 54.3 million tons (-2.3% y-o-y), and iron ore shipments (only for AMMC and Liberia) amounted to 26.4 million tons (+0% y-o-y).

Over the past year, the company reduced its net profit by 52.2% compared to 2023, to $2.33 billion. EBITDA decreased by 19.3% y-o-y, to $7.05 billion. Operating income amounted to $3.31 billion, up 41.4% y-o-y.