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Acerinox CEO: Trade uncertainty will diminish, and tariff benefits

Acerinox, a Spanish steelmaker, expects the trade uncertainty to 'fade' and that U.S. steel tariffs will continue to be beneficial to its business. This was stated by Bernardo Velázquez on Friday.

According to a J.P. Morgan report from January, the?stainless-steel and high performance alloy producer earns around 90% of its profits in the U.S.

Velazquez stated, "We're talking about situations in which we compete against countries who don't follow the rules of our game".

Velazquez 'admitted tariffs are a double-edged blade, as they shield their clients from competition in the U.S., but the uncertainty created by President Donald Trumps 'wide array of tariffs has made them defer a number of purchases and investments.

The?U.S. The Supreme Court's ruling that most of Trump’s tariffs were illegal and Trump's subsequent announcements of blanket tariffs of up to 15% or 10% have thrown businesses into further uncertainty.

STABILITY WILL PREVAIL

Velazquez, however, said that the situation was correct in the short term but that it will stabilize and have no effect on consumption in the long run.

Velazquez stated, "Despite all the 'fuss' about tariffs in the United States, nobody, and I mean no one has ever questioned Section 232."

Since Trump's first administration, Section 232 tariffs were in place. They were then?doubled during his second. Joe Biden was president between Trump's two terms. He?kept the tariffs in place?but signed partial reprieves for?European Union Metals in 2021.

Acerinox announced a net loss for the fourth quarter on Friday. However, it expects to see a slow recovery by 2026.

(source: Reuters)