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| Ukrmetprom |
Ukrainian Steel Industry Faces Renewed Tariffs
Ukrmetprom, representing Ukraine’s steel industry, has raised concerns over the US reintroducing a 25% duty on Ukrainian steel imports. Despite the US administration’s recognition that Ukrainian steel accounts for just 0.5% of total US steel imports, the duty could significantly impact the industry.
According to Ukrmetprom, Ukraine’s steel supply to the US—including direct exports and those processed in the EU—amounted to $258 million in 2024, representing 0.81% of total US imports. A significant portion of this trade comes from rebar processed at Promet Steel in Bulgaria, using billets from Kamet-steel, both under the Metinvest Group.
Economic and Industrial Impact of Tariff Reinstatement
If the tariff is reinstated, it could reduce rebar exports from Metinvest’s Bulgarian operations, leading to production declines at Kamet-steel (120,000 tons), iron ore mining (180,000 tons), railroad transport (400,000 tons), and port transshipment (200,000 tons). This would result in a $58 million loss in foreign exchange earnings and UAH 1 billion in reduced tax revenues for Ukraine.
Additionally, US consumers of steel pipes, particularly in the oil and gas sector, rely on imports to meet domestic demand, with imports comprising 30% of total US steel pipe consumption. Ukraine exports seamless OCTG and line pipes made entirely from domestic raw materials, with 40% of exports undergoing further processing in the US.
Ukrmetprom warns that an additional 25% duty could cause a 36% production decline at Interpipe Niko Tube in Nikopol, a frontline city near Russian-occupied territory. This could jeopardize jobs and local economic stability.
Call for Extended Tariff Exemption
Despite war-related losses, Ukraine’s mining and metals sector remains vital, contributing 6% to GDP and 16% to total exports, while providing 70,000 direct jobs and 280,000 in related industries. In 2024, the four largest steelmakers paid UAH 32.4 billion in taxes.
Ukrmetprom urges the US government to extend the tariff exemption until March 12, 2026. The WTO has pledged its support in assisting Ukraine’s efforts. First Vice Prime Minister and Minister of Economy Yulia Svyrydenko has reaffirmed Ukraine’s commitment to working with the US to resolve steel and aluminum tariff issues.
