US tariffs slash ArcelorMittal\’s steel profits.
ArcelorMittal Announces Mixed Half‑Year Results Amid Evolving U.S. Steel Tariffs
ArcelorMittal names a 39 % rise in net profit for January–June 2025 as a $1.7 billion one‑time gain from a stake purchase in a U.S. subsidiary overshadows a 10 % decline in operating earnings.
Key Financial Highlights
- Net profit: $2.6 billion (up 39 % YoY)
- Operating earnings: $3.4 billion (down 10 %)
- First‑half sales: $30.7 billion (down 5.5 %)
- Average steel price: $7.5 billion (down 7.5 %)
Impediments from U.S. Tariffs
U.S. President Donald Trump doubled steel and aluminium tariffs to 50 % in early June, covering Canada—the primary U.S. steel supplier—and Mexico. These tariffs are “eating into ArcelorMittal’s margin” and complicate its North American operations, which include factories in Canada, Mexico and the United States.
ArcelorMittal’s Global Footprint
ArcelorMittal produces steel in 15 countries and serves customers in 129 markets, enabling it to tap high‑growth regions such as India and Brazil.
Statements from CEO Aditya Mittal
“Our business fundamentals remain solid, but we must navigate ongoing geopolitical and tariff disruptions,” Aditya Mittal said. “Despite today’s challenges, I am confident that ArcelorMittal will continue to grow and thrive.”
Mittal additionally acquired full ownership of Calvert by purchasing a stake from Nippon Steel, strengthening its capacity to produce high‑quality steel for diverse customers, including the automotive sector.
Call to European Union
Mittal urged the EU to “detail the measures it plans to protect its market from a flood of cheap Chinese steel imports”. “It remains a crucial year for European steelmaking, and I sincerely hope Europe will keep its commitment to defend and prioritize its domestic steel industry,” he added.
Positive Outlook for European Steel
He added that a trend in Europe to boost government spending on defence and infrastructure is “positive for the steel industry.”
Stock Market Performance
ArcelorMittal shares dropped 3.9 % on the Paris exchange, while the CAC 40 index was up 0.4 %.
