Nucor's Topalian lauds Trump's trade policies, downplays impact

He contineud that aiding US critical national defense with the pro-American policies adopted by the administration “trumps” that risk.

“Pun intended,” Topalian quipped.

Improvement over first Section 232 tariffs

He explained that the original Section 232 tariffs from 2018 were “significantly weakened through country exemptions, quotas, and numerous product exclusions.”

“By 2024, fewer than 18% of steel imports were subject to Section 232 tariffs,” Topalian said. “Ending the exclusions in quota agreements was necessary to strengthen the US steel industry, which was the original goal of the 232 tariffs.”

As for the impact from new 232 tariffs on downstream products, Topalian said he couldn’t quantify anything specifically.

However, he did point out that the overall impact is “consequential.”

“We’re seeing a drop below 20% imports for the first time in many years, so it’s having a  positive impact,” Topalian said. “We did not see in Trump 1.0 derivative products being included in these pieces of legislation, which is now a step in the right direction.”

He also emphasized that Nucor is playing an active role with the White House.

“We’ll continue to work with the current administration to make sure that all the products, whether it’s raw materials or downstream, are being looked at for consideration, not just for Nucor but for the health and vibrancy of the steel industry and the macro,” Topalian said.

Additionally, he cited the recent Trump executive order on shipbuilding from earlier this month, and the preliminary results of the recent CORE case as positive developments in trade for steel.

Topalian said that “many of our country’s trading partners have taken advantage of our open markets for far too long to the detriment of the American manufacturer.”

Tariff impacts

Topalian downplayed any current headwinds from the Trump tariffs, noting that it’s a situation that changes day by day, and they are “monitoring very closely what those impacts will be.”

For example, he said most of the foreign equipment has already been purchased for its newest sheet mill under construction in West Virginia.

“Much of that equipment has not only been bought, it’s already been delivered,” he said. “And so the exposure there is dropping day to day.”

He was also asked about the potential impact from the 10% tariff that is currently on direct-reduced iron from its plant in Trinidad and Tobago. That rate could change when a pause on “reciprocal tariffs” expires in early July.

“Many of these tariffs in the final remedies are not executed yet,” Topalian said.

In any case, he noted that “Nucor maintains the most diversified raw materials supply strategy in the industry, period, full stop.”

When asked if Nucor would lobby the administration to remove tariffs on imported pig iron and DRI, Topalian was a little more circumspect. He again highlighted the company’s contact with the White House.

“And so whether it was President Biden or currently President Trump, are we working to make sure that their administration has the right information, the right understanding of the impacts related to this industry? Absolutely, we’re doing that every day,” he said.

While he explained that Nucor provided “an input to the administration, it’s not the only source … they’re taking.”

He concluded: “But obviously, the raw material sector, the tariffs, the derivative products, those things that impact Nucor, we’re working incredibly closely and making sure that they have the right information.”