Hydro outlines tariff impact on aluminium business

Hydro outlined the impact of recent US tariffs on its business recently.

The Norwegian aluminium manufacturer’s CEO Eivind Kallevik discussed the tariffs in a financial note last week.

The US trade policy has remained dynamic in recent months, with an expansion of Section 232 tariffs.

The 25% duties now apply to imports of aluminium, steel and automotive products.

Hydro’s exposure to aluminium tariffs is limited due to extensive domestic sourcing and pass-through pricing, with minor cross-border risks.

In automotive, about 6% of European vehicle production was exported to the USA in 2024.

Hydro Extrusions and Aluminium Metal each have an average market share of about 15–20% in their core segments within the European automotive industry. It results in limited direct exposure to potential US automotive tariffs.

Hydro said it was focused on securing stable access to the EU market for its Norwegian operations, while optimising its manufacturing value chain across the US, Mexico, and Canada.

Mr Kallevik said: “While the looming trade conflict is expected to have limited direct impact on Hydro’s business, we are closely monitoring the situation and remain ready to adapt to market changes, particularly if reduced consumer confidence leads to broader economic uncertainty.”

Source: www.aluminiumtoday.com