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Investing.com -- Shares in Swedish steelmaker SSAB (ST:SSABa) jumped nearly 6% Monday after U.S. President Donald Trump said on Friday that he plans to double tariffs on imported steel and aluminum to 50%, aiming to strengthen the domestic steel industry and safeguard American jobs.
While the move is generally seen as a major risk for European steel companies that export to the U.S., SSAB is notably better-positioned thanks to its domestic U.S. plate exposure.
“The U.S. is a net importer of steel, and a potential increase in U.S. steel tariffs to 50% (from 25%), would be an overall headwind for EU-listed steel companies which export volumes to U.S,” Jefferies analysts Cole Hathorn and Tommaso Castello said in a note.
On the other hand, SSAB is seen as “a beneficiary of higher U.S. plate pricing,” the analysts added.
The Stockholm-based company generates 18% of its EBITDA from the U.S., where it holds a strong domestic position as a leading producer of steel plates, operating 2.4 million tonnes of capacity and controlling roughly 25–30% of the market.
“SSAB has been a beneficiary of U.S. plate market recovery in 2025 year-to-date, and holding U.S. plate pricing & demand dynamics from here is key for the near-term equity story,” the analysts continued.
Higher U.S. steel plate prices from increased tariffs could benefit SSAB’s Americas and Special Steels divisions, the analysts added, which together account for around 70% of EBITDA, while expected export headwinds for SSAB Europe are likely to be more than offset.
Trump’s announcement came during a rally near Pittsburgh, where the President talked about Nippon Steel’s (TYO:5401) $14 billion acquisition of United States Steel Corporation (NYSE:X). He said the deal would keep control of the iconic manufacturer firmly in American hands.
Trump argued that global steel prices have declined in recent months, making the existing 25% tariff less effective, as importers can still undercut U.S. producers. The new higher rate is set to take effect on June 4.
However, his decision could strain relations with key trading partners. The EU criticized the move, saying it jeopardizes current trade talks with Washington and warned of possible retaliation.
“The EU is prepared to impose countermeasures, including in response to the latest U.S. tariff increase,” a spokesman said.
Trump has framed Nippon Steel’s planned takeover of U.S. Steel as a key strategic partnership, though key details of the deal remain uncertain. The two companies have kept quiet about next steps, leaving questions about the future of the deal and its impact on the broader sector.