U.S. Tariffs on Steel and Aluminum Imports Pose Challenges for Slovenian Businesses

Ljubljana – Slovenian steel and aluminum companies are expressing concerns over the United States’ decision to impose a 25% tariff on imported steel and aluminum, effective March 12. This move, announced by President Donald Trump, is anticipated to impact the European Union as well, intensifying competitive pressures for the Slovenian market.

The Sij Group, one of Europe’s prominent manufacturers of stainless and specialty steels, views the US as a crucial market with long-term potential. The company reported generating approximately €100 million, accounting for 9.9% of its total sales last year, which represents an increase of about 16.5% from the previous year, as reported by STA.

Sij has been operating in the US for over three decades through its subsidiary, Sij Americas, and in 2022, it established a 3,000-square-meter warehouse in Romeoville, near Chicago, to improve product accessibility and expand their market share in the region.

The company noted that Slovenia currently benefits from a quarterly import quota for exporting stainless steel heavy plates to the US, which is exempt from tariffs. However, shipments exceeding this quota are subject to the 25% import duty. “Eliminating these quotas and imposing additional tariffs would undermine our price competitiveness against American steel manufacturers,” they stated, emphasizing their commitment to monitor developments and adapt in line with their strategic objectives.

Meanwhile, aluminum processor Impol has already scaled back its exports to the US in reaction to anti-dumping regulations put in place in 2020 under the Trump administration. In 2019, the US market accounted for 10% of Impol’s total sales, but by 2024, this figure had plummeted to less than 3%.

Producers of primary aluminum and aluminum alloys, such as Talum, are even less reliant on the US market, having sold less than half a percent of their production there last year, suggesting the tariffs will have minimal direct impact on them.

According to preliminary data from Slovenia’s national statistical office, the country’s exports to the US reached nearly €91.3 million in steel and €32.5 million in aluminum and aluminum products last year, reflecting significant annual growth. In 2023, exports comprised just over €71.6 million in steel products and €19.5 million in aluminum and aluminum products.