Acerinox CEO says trade uncertainty will fade, sees tariff benefits

By Javi West Larrañaga

Feb 27 (Reuters) - Spanish steelmaker Acerinox ACX.MC expects trade uncertainty to fade and the advantages of U.S. tariffs on steel to continue to bear fruit for its business, its CEO Bernardo Velázquez told Reuters on Friday.

The stainless steel and high-performance alloy producer makes around 90% of its core profits in the U.S., according to a J.P. Morgan note from January.

"We are talking about situations where we are competing against countries that do not follow the rules of the game that we follow", Velázquez said.

Velázquez admitted that tariffs were a double-edged sword, because, just as Section 232 steel tariffs in the U.S. shield them from outside competition, the uncertainty caused by U.S. President Donald Trump's wide array of tariffs had made its clients defer purchases and investments.

Additionally, the U.S. Supreme Court's decision to rule most of Trump's tariffs unlawful and Trump's subsequent announcement of 10% -or up to 15%- blanket tariffs, has thrown companies back into uncertainty yet again.

STABILITY WILL PREVAIL

Still, Velázquez said that this was true in the short term, but that he believes the situation will stabilise and not affect consumption in the future.

"One very important thing, speaking of the United States, is that with all the fuss about tariffs, no one, absolutely no one, has questioned (Section) 232," Velázquez said.

Section 232 tariffs have been in place since Trump's first term and were doubled in his second term. President Joe Biden, who was in power between Trump's terms, kept them in place but signed a partial reprieve for European Union metals in 2021.

Acerinox reported a fourth-quarter net loss on Friday, but expects a slow recovery in 2026.