Company: MT
Filing Date: 2025-03-10
Form Type: 20-F
Source: 0001243429-25-000017
Chunk: 166

Company: ArcelorMittal
Filing Date: 2025-03-10
Form: 20-F
Chunk 166
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 rates has negatively affected the manufacturing and construction sectors that drive steel demand, with new orders and backlogs weakening and real steel demand declining during the second half of 2023 and through 2024. In addition, the recently announced imposition of tariffs on all steel imports into the U.S. could result in retaliatory protectionist measures by other countries and have a significant negative impact on global trade and economic growth. In Europe, this could potentially offset the positive impact of monetary policy easing in the region and increase the risk of an economic downturn. The automotive industry, which is a significant consumer of steel, is likely to be negatively impacted by the

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tariffs and resulting higher steel prices. More generally, tariffs may result in renewed inflationary pressures in the U.S . Tariffs on EU exports to the U.S. is also expected to negatively impact steel demand in EU as steel intensive manufactured goods account for a significant proportion of the EU’s goods trade surplus with the U. S . U.S. tariffs are also expected to have an effect on supply and prices in the U.S. and the Company's other markets (such as Canada and Mexico). See “Introduction—Risk Factors and Control—Unfair trade practices, import tariffs and/or barriers to free trade could negatively affect steel prices and ArcelorMittal’s results of operations in various markets". While steel demand in both the U.S. and EU continues to be well below pre-pandemic levels, steel consumption has been expected to be supported over the next few years by the American Jobs Plan (“AJP”) and the Inflation Reduction Act (“IRA”) in the U.S. and by the Next Generation EU (“NGEU”) stimulus plans in the EU. However, beyond the impact of tariffs mentioned above, the new U.S. administration's policies present a significant downside risk to the additional steel demand from the IRA, with some potential offset from hot rolled substrate for additional pipe and tube demand from the oil sector. Demand in some markets, such as Brazil rebounded during 2024, to well above pre-pandemic levels. Inflation has accelerated in such markets, however, driven by resilient domestic demand and by looser fiscal policy. With inflation above target, interest rates have been raised and further monetary tightening is expected, negatively impacting household consumption in 2025, which is expected to lead to broadly stable steel demand in Brazil. While many emerging markets are better placed to deal with crises than in the past, economic risks remained high through 2024 for many countries