Ukrainian Association «Ukrmetalurgprom», representing Ukraine’s mining and metallurgical industry, expresses its deep concerns regarding the decision by the U.S. Administration, led by President Donald Trump, to reinstate the 25% tariff on imports of Ukrainian steel products.

Despite significant losses sustained during the ongoing war, which has now lasted for ten consecutive years, Ukraine’s mining and metallurgical sector remains a critical pillar of the national economy and a vital element in its defense against aggression. In 2024, Ukrainian miners and steelworkers contributed 6% to the country’s GDP and nearly 16% of its total exports. The four largest Ukrainian metallurgical companies collectively paid UAH 32.4 billion in taxes to the state budget. Even after losing half of its production capacity due to hostilities, Ukraine’s steel industry continues to provide 70,000 direct jobs and supports over 280,000 jobs in related industries.

The U.S. President proclamation reinstating the tariffs acknowledges that Ukrainian steel does not pose any threat to the steel industry of the USA, as it accounts for less than 0.5% of total U.S. steel imports.

The slight increase in imports of steel melted & poured in Ukraine and processed in the EU is primarily attributable to rebar shipments from Promet Steel in Bulgaria (part of the Metinvest Group). These shipments utilized Ukrainian billets produced by Kamet Steel in Kamianske, Ukraine (also part of the Metinvest Group). In 2024, the total value of steel supplied to the U.S. from Ukraine—both directly and via processing in the EU—amounted to $258 million, representing just 0.81% of total U.S. steel imports ($31.639 billion). These figures demonstrate that Ukrainian-origin steel, whether exported directly or processed in the EU, cannot reasonably be considered as a threat to the U.S. steel industry.

Furthermore, maintaining the tariff exemption for Ukrainian steel, including products made in the EU from Ukrainian steel, provides essential support to Ukraine as it continues to resist unprovoked military aggression from Russia. The exemption enables Ukrainian steel exporters to sustain their operations, contribute to the national budget, and support the broader Ukrainian economy during these challenging times.

Should the U.S. tariff be reinstated, the impact on Metinvest Group alone would be significant. Reduced rebar exports from its Bulgarian plant to the U.S. would result in:

• 120,000-ton decrease in billet production at Kamet Steel;
• 180,000-ton decline in iron ore production;
• 400,000-ton drop in rail transport volumes;
• 200,000-ton reduction in port handling operations.

Collectively, these losses would cause a $58 million decrease in foreign currency revenues and a UAH 1 billion shortfall in tax contributions to Ukraine’s state budget.

Reinstating the 25% tariff would also harm U.S. consumers of steel pipes, particularly in the oil and gas sector. Domestic U.S. pipe manufacturers are currently unable to meet domestic demand, with imports accounting for approximately 30% of total pipe consumption.

Ukraine primarily exports seamless Oil Country Tubular Goods (OCTG) and line pipes to the U.S., all of which are produced entirely in Ukraine from Ukrainian raw materials. Around 40% of these pipes undergo additional processing in the United States before reaching end users in the American oil and gas industry.

This production takes place at the Interpipe Niko Tube plant in Nikopol, a frontline city located just 4.7 km from the Russian-occupied Zaporizhzhia Nuclear Power Plant. Preliminary estimates indicate that a 25% tariff would lead to a 36% decrease in production at the plant, endangering jobs and the economic stability of the local community while simultaneously undermining Ukraine’s overall economic resilience.

This week, Ministry of Economy of Ukraine publicly expressed its willingness to engage in negotiations with U.S. officials to find a mutually acceptable solution that would preserve Ukraine’s access to the American steel market. Given the above facts, as well as positive trade balance between the U.S. and Ukraine, we urge all relevant stakeholders to make every effort to convince the U.S. Administration to extend the exemption originally granted under Presidential Proclamation No. 10771, issued on May 31, 2024. Specifically, we call for the continued exemption—until March 12, 2026—from the 25% import tariff imposed under Section 232 of the Trade Expansion Act of 1962 for steel products:

• produced in Ukraine;
• and produced in the European Union from steel melted and poured in Ukraine.

The Association «Ukrmetalurgprom» stands ready to assist the Ukrainian government in every possible way to secure this exemption. Ensuring that Ukrainian steel products remain free from this unjust tariff is essential not only for the stability of a key industrial sector but also for maintaining Ukraine’s economic resilience, defense capabilities, and national security.