ArcelorMittal announced on July 31 that it has increased its projected financial impact from U.S. steel tariffs to $150 million in 2025, up from a previous estimate of $100 million. CFO Genuino Christino stated that the company is actively implementing measures to mitigate this hit by expanding its operational footprint in the United States. These include sharing tariff-related costs with customers and reducing overhead expenses.
A key step in this strategy is the recent acquisition of Nippon Steel’s 50% stake in the Calvert, Alabama joint venture. This acquisition gives ArcelorMittal full ownership of a 1.5 million-ton-per-year electric arc furnace (EAF) at the site, enabling the company to produce more steel domestically. A new seven-year slab supply agreement will also ensure that around 50% of Calvert’s output qualifies as U.S.-made, helping the company comply with local sourcing requirements.
In June, ArcelorMittal also commissioned a new EAF at Calvert to produce low-carbon automotive-grade steel, enhancing its sustainability profile. Christino emphasized that these moves, along with continued investment in U.S. capacity, will help the company maintain competitiveness and support clients amid the ongoing 50% tariff regime.
