Zaporizhzhia, Ukraine – The Ukrainian steel industry is facing potential economic challenges following the recent imposition of U.S. tariffs on imported steel and aluminum. The tariffs, implemented by the administration of U.S. President Donald Trump, are expected to be at least 25% and could impact Ukraine’s ability to export steel to the U.S. market.
The Zaporizhstal Iron and Steelworks, one of Ukraine’s largest steel plants, continues to operate in the industrial east of the country, an area affected by ongoing military conflict. The plant produces materials used in military equipment, construction, and manufacturing. However, industry officials warn that the new trade policy may add financial strain to an already weakened sector.
According to the Ukrainian Steel Association, the U.S. tariffs could result in an estimated revenue loss of 2.4 billion hryvnias ($58 million) per year for the industry, with the Ukrainian government losing approximately 1 billion hryvnias ($24 million) in tax revenue annually. Steel exports, which have declined significantly since the onset of the conflict, account for a reduced share of the country’s gross domestic product compared to pre-war levels.
Ukrainian Economy Minister Yulia Svyrydenko has indicated that officials are seeking discussions with U.S. representatives to negotiate an exemption for Ukrainian steel products until March 2026. The exemption request also includes steel semi-finished products processed within the European Union, which accounts for a significant portion of Ukraine’s steel exports.
“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 military aggression,” the Ukrainian Steel Association stated. The organization argues that Ukrainian steel imports account for only 0.81% of total U.S. steel imports and do not pose a threat to domestic U.S. industry.
The broader steel sector in Ukraine has faced disruptions due to the conflict, including logistical challenges, increased energy costs, and shifting export markets. The Metinvest Group, which owns Zaporizhstal, has had to adjust operations following the loss of steel plants in Mariupol and disruptions in coal supply from eastern Ukraine. The company now imports approximately 1 million metric tons of coal annually from Europe and the U.S. to maintain production levels.
Industry representatives have also raised concerns about potential ripple effects from the U.S. tariffs. Some worry that European countries could impose similar trade restrictions to offset the impact of new duties on their goods, further complicating Ukraine’s export strategy.
As the situation evolves, Ukrainian officials continue to engage with international partners to explore solutions that could mitigate the economic impact of the tariffs while maintaining trade relations with the U.S. and the EU.
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