US Tariffs Corrode Steelmaker ArcelorMittal's Profitability

Published: Thursday, July 31, 2025 at 7:51 am

ArcelorMittal's Profits Rise Despite US Tariff Headwinds

Luxembourg-based ArcelorMittal, the world's second-largest steelmaker, reported a significant increase in its half-year net profit, although US tariffs are beginning to impact its profitability. The company's net profit for the first six months of the year surged by 39 percent to $2.6 billion, compared to the same period in the previous year. This increase was largely attributed to a $1.7 billion gain from acquiring a stake in a US unit.

However, the company's operating earnings, which exclude interest, depreciation, and taxes, experienced a 10 percent decline, reaching $3.4 billion. This decrease was primarily due to the impact of US tariffs on steel imports. The US government, under the previous administration, doubled tariffs on steel and aluminum to 50 percent at the beginning of June, affecting imports from countries like Canada and Mexico.

ArcelorMittal operates globally, with steel production in 15 countries and serving customers in 129. The company benefits from high-growth markets such as India and Brazil. Despite this global presence, the introduction of US steel tariffs has complicated operations in North America, where it has factories. Sales for the first half of the year decreased by 5.5 percent to $30.7 billion, reflecting a 7.5 percent drop in average steel prices.

The company's CEO, Aditya Mittal, acknowledged the challenges posed by geopolitical and tariff disruptions. He expressed confidence in ArcelorMittal's ability to grow and thrive. Mittal highlighted the strategic importance of acquiring full ownership in a US unit, strengthening its capacity to produce high-quality steel for various industries, including automotive. He also urged the European Union to take measures to protect its market from cheap Chinese steel imports. Mittal noted that increased government spending on defense and infrastructure in Europe is a positive trend for the steel industry. ArcelorMittal's shares experienced a decline in Paris, while the broader market index saw a slight increase.

BNN's Perspective:

The situation highlights the complex interplay of global trade, geopolitical tensions, and corporate performance. While ArcelorMittal's global footprint provides some insulation, the impact of US tariffs underscores the vulnerability of businesses to protectionist policies. Finding a balance between supporting domestic industries and maintaining open trade is crucial for long-term economic stability.

Keywords: ArcelorMittal, steel, tariffs, US, profits, earnings, imports, trade, global, Europe, China, Aditya Mittal, net profit, operating earnings, sales

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