Company: MT
Filing Date: 2025-08-01
Form Type: 6-K
Source: 0001243429-25-000067
Chunk: 6

Company: ArcelorMittal
Filing Date: 2025-08-01
Form: 6-K
Chunk 6
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 raised to a very high level by the current administration. Increased global trade barriers, in addition to high volatility from changing policy announcements, providing significant headwinds to investment as businesses were in a ‘wait-and-see’ mode and delayed capital expenditures, negatively impacting economic growth.

In the U.S., despite elevated tariff levels and heightened uncertainty, there was limited direct impact of tariffs on inflation, as headline inflation rose to 2.7% in June 2025, from 2.4% in March 2025 before tariffs were raised significantly in the second quarter of 2025. This was largely due to the front-loading of imports in the first quarter of 2025 ahead of April’s tariff hike. In addition, activities were also likely supported by trade re-routing, as while imports from China fell significantly in the second

quarter, imports from elsewhere, most notably ASEAN, rose similarly to the trend seen after tariffs were imposed on China in 2018. While there is a limited direct impact, high degree of uncertainty negatively impacting investment by forcing businesses into "wait-and-see" mode until there is more clarity to deploy capitals. While the U.S. Federal Reserve cut interest rates through 2024 as inflation, which peaked at 8% in 2022, fell to below 3% in 2024, growing inflationary concerns led the central bank to be more cautious, and interest rates were kept at elevated levels (currently 4.25 – 4.5%) during the first half of 2025. Delayed investment, prolonged elevated interest rates and increased costs weighed on construction activity, with construction spending declining by 1.6% year-on-year for the period of January to May 2025. Overall, GDP growth during the first half of 2025 was estimated at around 1.9%, slowing from 2024’s growth of 2.8%.

In the EU, economic activity stagnated at low levels due to the lagged impact of high interest rates, in addition to persistent weakness in industrial sectors. This meant GDP only increased by 1% year-on-year in 2024. Despite limited direct impact of the U.S. tariffs on the EU economy, in the first half of 2025, economic activity remained at weak levels with GDP growth estimated at 1.5% year-on-year due to the high degree of uncertainty impacting business investments, in addition to EU export-oriented manufacturing sectors. As a result, industrial activity remained at weak levels as manufacturing outputs broadly stagn