Impact of Tariffs and Trade Flows on North American Imports
Tariff uncertainties have led to strategic shifts in trade flows, with import volumes rising significantly in North America and some pressure on European markets.
The company expects that with current tariff levels, imports into North America will decrease, supporting higher operating rates and potentially better pricing power.
The company continues to focus on its core strategy of being a supplier of choice in uncoated freesheet, despite trade flow disruptions.
Impact of Tariffs on Business Strategy and Operations
Hyster-Yale is actively managing tariff impacts through monthly price adjustments based on actual product costs, reflecting a flexible pricing strategy to offset tariff-related cost increases.
The company has built in a 10-15% tariff impact into its outlook, with ongoing negotiations and adjustments, especially in China and India where tariffs remain high.
Tariffs have caused a $10 million negative impact on product margins in Q2, prompting proactive measures such as global sourcing and cost management to mitigate effects.
Management expects tariffs to negatively affect financial results in the second half of 2025 despite mitigation efforts, with some uncertainty about the timing and magnitude of tariff stabilization.
Impact of U.S. Steel Tariffs and Trade Enforcement Strategies
Nucor supports increasing tariffs to 50% under Section 232 and advocates for vigorous enforcement of trade laws.
Preliminary trade investigations into steel derivative products and rebar imports from multiple countries are underway, with expected affirmative final determinations later in the year.
Nucor's raw material supply chain is highly diversified, with internal and external sourcing options, enabling agility in response to tariffs and import pressures.
The company has mitigated the impact of tariffs on Brazilian slab imports through supply chain adjustments, including internal sourcing and alternative international sources.
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