Tuesday18 March 2025
podrobnosti.org.ua

Due to U.S. steel tariffs, Ukraine stands to lose a billion hryvnias annually, reports The Independent.

The "Zaporizhstal" metallurgical plant, part of the Metinvest group, continues its operations in a partially occupied region of Ukraine. Daily battles from the war initiated by Russia are occurring along the front line, just 40 kilometers from the plant, while it produces materials for military equipment and foreign clients.
Из-за американских пошлин на сталь Украина будет терять миллиард гривен ежегодно, - сообщает The Independent.

This is reported by RBK-Ukraine citing The Independent. It is also mentioned by Kontrakty.UA.

However, last week, a second war—this time a trade war—knocked on the door of "Zaporizhstal," triggered by U.S. President Donald Trump, who imposed a 25% tariff on all imported steel and aluminum.

The American president stated that the introduction of various tariffs would "level the playing field in international trade and make U.S. businesses more competitive." However, Ukrainian officials and business leaders were taken aback by Trump's decree, as the steel industry in Ukraine is currently going through very tough times, the publication notes.

"The share of the steel industry in Ukraine's gross domestic product has nearly halved since Russian troops entered the country, and steel exports are now significantly below pre-war levels. The Ukrainian Steel Association warned that if the U.S. import tariffs come into effect on March 12, it will cost the weakened industry 2.4 billion hryvnias ($58 million) in revenue. The government, on the other hand, will lose 1 billion hryvnias ($24 million) in taxes annually," the publication emphasizes.

It is worth noting that over the past five years, the largest metallurgical enterprises in Ukraine have paid taxes and fees totaling 190 billion UAH, or $6.2 billion. By the end of 2024, the tax and fee contributions of four metallurgical companies accounted for 1.6% of revenues to budgets at all levels.

Moreover, 61% of the total tax amount paid by metallurgists in 2024 comes from the company "Metinvest." However, if the tariffs of state monopolies increase, the budget risks losing a source of revenue, as producers may start shutting down their facilities.