Regarding the final decision of the US to impose additional tariffs on steel and aluminum imports from the European Union (EU), Austrian steelmaker voestalpine AG has stated that from today’s perspective it is difficult to assess the long-term effects of the tariffs on the global economic structure and free trade. Wolfgang Eder, CEO of the company, stated that as a company they have prepared for all eventualities and take due note of the US administration’s decision. According to Mr. Eder, maximally around three percent of current group revenue could be affected by US tariffs, so that, even in extreme circumstances, the economic risk for voestalpine remains very manageable.
According to the company’s statement, it began thoroughly exploring the potential consequences of such measures on its business in the US and its relationships with the US some time ago. Over a year ago, the company established a “Taskforce USA” to monitor developments in the US.
The company also stated that it generates around two thirds of its US revenue of around €1.2 billion (2017) as a local manufacturer in the US, and therefore these operations will not be directly affected by the planned measures. The extent to which the remaining revenue will be impacted by the import restrictions has been undergoing detailed examination for some time, while at the same time alternative options are also being considered.
Over the past months, voestalpine companies which will be directly impacted by the tariffs have already submitted extensive applications for exemptions from the punitive tariffs on their products. However, voestalpine said that to date the US administration has not processed any of these applications, either from voestalpine, its partners, or customers.