The association of enterprises "Ukrmetallurgprom," which is authorized to represent the interests of Ukraine's mining and metallurgical complex (MMC), expresses concern and deep apprehension regarding the decision of U.S. President Donald Trump's administration to reinstate a 25% tariff on imports of Ukrainian steel products, and proposes to refrain from imposing the tariff at least until March 12, 2026.
In a statement, it is noted that despite the losses suffered during the ongoing ten-year war, Ukraine's MMC remains a leading industry in the country, standing firm against the aggressor. In 2024, Ukrainian miners and metallurgists contributed 6% of GDP and nearly 16% of total Ukrainian exports, while the four largest metallurgical companies in Ukraine paid 32.4 billion UAH in taxes to the budget. Even after losing half of their capacities due to hostilities, Ukraine's metallurgy sector provides 70,000 jobs directly at metallurgical plants and over 280,000 in related industries.
In the very document that introduces these tariffs, the U.S. acknowledges that Ukrainian metal products pose no threat to the American steel industry, as their share does not exceed 0.5% of the total U.S. steel imports.
At the same time, a certain increase in the volumes of imported steel melted in Ukraine and processed in the EU has occurred largely due to rebar supplies from the Promet Steel plant (Bulgaria, part of the "Metinvest" group), sourced from Ukrainian billets produced by "Kametstal" (located in Kamianske, Dnipropetrovsk region, also part of the "Metinvest" group). The total value of steel imported to the U.S. from Ukraine in 2024 (either directly or through EU processing) amounted to $258 million, or 0.81% of the total steel imports into the U.S. ($31.639 billion).
"This indicates that steel of Ukrainian origin (which was supplied both directly and through processing in the EU) cannot threaten the U.S. steel industry. Furthermore, the exemption for Ukrainian steel, including that originating from the assets of Ukrainian companies in the EU, from the import tariff is significant support for Ukraine in the face of unprovoked military aggression from the RF, as it allows Ukrainian metal exporters to continue operations and contribute to the Ukrainian budget," the statement emphasizes.
It is also stated that if the import tariff on Ukrainian steel is reinstated, the reduction of rebar exports to the U.S. from the Metinvest group’s Bulgarian asset alone would mean a decrease in steel billet production at "Kametstal" by 120,000 tons, iron ore production by 180,000 tons, railway transport volumes by 400,000 tons, and port transshipment volumes by 200,000 tons, which in turn would lead to a loss of $58 million in foreign currency receipts and a reduction of tax contributions to the state budget by 1 billion UAH.
Additionally, it is noted that the reinstatement of the 25% tariff by the U.S. also delivers a significant blow to American consumers of steel pipes, particularly in the oil and gas sector. American pipe manufacturers cannot meet domestic demand on their own, necessitating imports, which currently account for 30% of total pipe consumption in the U.S.
Ukraine supplies seamless OCTG (Oil Country Tubular Goods) and line pipes primarily for the oil and gas industry to the U.S. All pipes exported to the U.S. are 100% produced in Ukraine and made from Ukrainian raw materials. This product is supplied directly to American clients, with approximately 40% of the total export volume undergoing additional processing in the U.S.
The production of these pipes in Ukraine takes place at the "Interpipe Niko Tube" plant, located in Nikopol, a frontline city just 4.7 km from the Zaporizhzhia nuclear power plant occupied by Russia. Preliminary estimates suggest that the additional 25% tariff would lead to a potential production reduction at the plant of 36%. This, in turn, threatens the stability of the plant's workforce and the local community, delivering a severe blow to both the city and Ukraine's economic resilience.
"This week, we heard a statement from the Ukrainian Ministry of Economy about readiness to negotiate with Washington to find an optimal solution for maintaining access to the U.S. market for Ukrainian products. We believe that, considering the above, as well as the positive trade balance between the U.S. and Ukraine, all measures must be taken to convince the U.S. to extend the exemption granted under U.S. Presidential Proclamation No. 10771 from May 31, 2024, namely: to exempt until March 12, 2026, from the additional 25% import tariff under Section 232 of the Trade Expansion Act of 1962, steel products produced in Ukraine, as well as those produced in the European Union from steel melted and poured in Ukraine," calls the association of metallurgical and mining enterprises of Ukraine.
The document adds that "Ukrmetallurgprom" is ready to provide any assistance and support to the Ukrainian authorities to achieve the exclusion of Ukrainian metallurgical goods from the scope of the unjustly imposed tariff, which would adversely affect not only a specific industry but also the economic stability, defense capability, and national security of Ukraine as a whole.
As reported, U.S. President Donald Trump signed an order on February 11 to impose an additional 25% tariff on all imported steel and aluminum, including from Ukraine.
First Deputy Prime Minister - Minister of Economy Yulia Svyrydenko stated that the Ukrainian side will continue active work with partners to find an optimal solution for the metallurgical sector before the U.S. tariffs come into effect.
"We have made every effort to ensure that Ukrainian steel remains exempt from the 25% tariffs in the U.S. The U.S. decision to impose a tariff on our steel as of March 12 will inevitably impact the metallurgical sector, which has already suffered from Russian aggression. However, we are committed to working actively with partners to find an optimal solution before March 12," Svyrydenko wrote on social media platform X.
In her Facebook post, Svyrydenko added that the export of metallurgical products accounted for 57.9% of Ukraine's total exports to the U.S. - $503.3 million out of $869.1 million. The largest export items were pig iron ($363.4 million, 940,000 tons), pipes ($112.9 million, 92,000 tons), rebar ($15.2 million, 3,300 tons), wire ($4 million, 3,900 tons), and metal structures ($1.3 million, 182 tons).
"At the same time, as noted in Trump's proclamation itself, the share of Ukrainian products in U.S. steel imports is minimal and does not have a significant impact on American manufacturers. The largest exporters of this product are "ArcelorMittal Kryvyi Rih" and "Interpipe." These companies have been severely affected by the war, just like the entire metallurgical sector," the First Deputy Prime Minister - Minister of Economy stated.