U.S. tariffs impact Argentine steel industry: 1,000 jobs cut

Thursday 13 February 2025 - 15:04

The recent imposition of a 25% tariff on steel and aluminum imports by the United States is already affecting Argentina. On Wednesday, an Argentine steel company announced the dismissal of 1,000 workers in response to the new trade measures.

Acindar, a subsidiary of the Indian group ArcelorMittal, reached an agreement with the metallurgical union to suspend 970 employees in an effort to cut costs amid an expected decline in demand. This decision aligns with the anticipated drop in production and the global repercussions of U.S. trade policies.

Under the agreement, the affected workers will receive 80% of their salary in February, 78% in March, and 75% from April to December 2025.

Additionally, Acindar has introduced a voluntary departure plan for 200 employees and is negotiating with subcontractors to eliminate another 200 indirect jobs.

Local analysts warn that other major Argentine companies, some of which export up to 40% of their production to the U.S., could also face difficulties due to the new tariffs.

Meanwhile, the Argentine government has announced that President Javier Milei is preparing another visit to Washington to meet with his U.S. counterpart, Donald Trump. The visit comes at a time of heightened tensions over trade barriers, with Milei reiterating his goal of securing a free trade agreement with the United States.