Norwegian aluminium producer Hydro has said that newly expanded U.S. tariffs on metals and automotive products are unlikely to significantly impact its business, due to limited exposure to affected trade flows and a diversified production footprint.
In a financial update last week, CEO Eivind Kallevik addressed the evolving U.S. trade policy landscape, particularly the expansion of Section 232 tariffs. These duties, now set at 25%, apply to a broader range of imports, including aluminium, steel, and automotive components.
Hydro’s aluminium operations are largely insulated from the tariffs. The company sources much of its metal domestically within the U.S. and operates under pass-through pricing models that reduce the direct financial impact of import duties. Cross-border exposure is described as minor.
In the automotive sector, roughly 6% of European vehicle output was exported to the U.S. in 2024, limiting the effect of new tariffs on European producers. Hydro’s aluminium extrusion and primary metal divisions hold a 15–20% share in their key segments within the European automotive industry, meaning any direct tariff-related losses are expected to be modest.
Hydro said it continues to focus on ensuring uninterrupted access to the EU market for its Norwegian production, while adjusting its manufacturing network across North America to respond to trade developments. The company operates across the U.S., Mexico, and Canada.
Kallevik noted that although the trade measures are not expected to directly disrupt operations, Hydro is watching for broader macroeconomic effects: “While the looming trade conflict is expected to have limited direct impact on Hydro’s business, we are closely monitoring the situation and remain ready to adapt to market changes, particularly if reduced consumer confidence leads to broader economic uncertainty”.
