The Impact of Steel Tariffs on Interpipe and US Consumers
The return of 25% steel import tariffs in the United States has created significant turbulence not only for Ukrainian steel manufacturer Interpipe but also for American consumers of steel pipes. Denys Morozov, the First Deputy CEO of Interpipe, highlighted the crucial impact of these tariffs on both the company and the US market.
“Our threaded connections are very popular in the US market,” Morozov said at the Business Wisdom Summit 2025. The company had been developing a specialized connection for the growing demand in the US, but the tariffs are now hampering these efforts. The tariffs, which are part of President Trump's broader trade policy, are designed to protect American steelmakers, but the policy’s ripple effects are being felt across industries.
Shortages and Production Challenges at the Nikopol Plant
The biggest threat posed by these tariffs is not only to Interpipe’s bottom line but also to the US steel pipe market, which is currently facing supply shortages. The situation at Interpipe’s Nikopol plant in Ukraine exemplifies the complexities of doing business in a war-torn region. The plant, which lies within an active conflict zone, is under immense pressure as it faces both the physical toll of Russian shelling and the economic strain of the import tariffs.
Morozov noted that despite these adversities, the Ukrainian team’s resilience remains unmatched. “People are working and producing goods, including for the US and the EU. The resilience of Ukrainians is truly impressive,” he emphasized. The Nikopol facility is central to Interpipe’s operations, manufacturing steel pipes that are used across industries like oil and gas, construction, and infrastructure.
Navigating Geopolitical and Trade Obstacles: R&D and Innovation as Key Strategies
To combat these challenges, Interpipe is doubling down on research and development (R&D). The company is in the final stages of developing a new threaded connection designed specifically for the needs of US customers. By tailoring products to the demands of different markets, Interpipe hopes to maintain its foothold in the US, despite the negative impact of tariffs.
“Our sole focus is ensuring a secure and sustainable future for British Steel’s production in Scunthorpe,” Morozov stated, reflecting a steadfast commitment to overcoming external pressures. Interpipe’s R&D department is focused not just on product innovation but also on creating products that American competitors do not produce, positioning the company as a unique player in the market.
Building on Success in the EU: The Advantage of Duty-Free Trade
Interpipe’s success in the European market provides a vital blueprint for how the company plans to weather the storm created by US tariffs. Over the three years of duty-free trade with the European Union, the company managed to develop around 250 new types of pipe products, a significant achievement for any manufacturing firm.
According to Morozov, “In the three years we had duty-free trade with the EU, we made many investments and mastered about 250 new types of products. Interpipe must develop and offer products that our competitors don’t produce.” These innovations have helped Interpipe secure a strong presence in the EU market, a region that has also become increasingly important in light of the shifting global trade landscape.
Investments in New Technology and Facilities: A $40 Million Thermal Department
In addition to innovation through product development, Interpipe has continued to invest in its operations to maintain competitiveness. The company’s recent construction of a $40 million thermal department in Nikopol is a direct response to the changing dynamics of the global steel industry. This new department will allow Interpipe to produce steel pipe products with higher added value, a critical advantage in markets like the US, where quality and differentiation are increasingly important.
Morozov explained that “The thermal department in Nikopol will enable us to offer US clients new products with even higher added value.” This technological upgrade is an essential part of the company’s strategy to overcome the challenges posed by tariffs and quotas, and to maintain its position as a leading supplier of steel pipes worldwide.
The Long-Term Vision: Growth Despite Adversity
Despite the ongoing challenges, Morozov’s outlook for the future of Interpipe remains positive. The company’s ability to adapt, invest in new technologies, and develop products tailored to specific market needs has positioned it to continue growing. The US market, while difficult due to tariffs, remains a key part of Interpipe’s strategy.
Additionally, Interpipe plans to continue investing in other areas of its business to further diversify its portfolio and protect against market fluctuations. “Interpipe will continue to develop and offer products that our competitors don’t produce,” Morozov added. By focusing on innovation, quality, and customer-specific products, Interpipe aims to not only survive but thrive in the global steel market.
Key Takeaways:
• The 25% steel import tariffs in the US have significantly impacted Ukrainian steel manufacturer Interpipe, leading to supply shortages in the US.
• The company’s plant in Nikopol, Ukraine, is facing dual threats of Russian shelling and economic strain due to tariffs.
• Interpipe continues to innovate, developing new threaded connections tailored to the needs of US customers.
• In three years of duty-free trade with the EU, Interpipe developed approximately 250 new product types, securing its position in the European market.
• A new $40 million thermal department has been built in Nikopol to produce high-value steel pipe products.
• Despite the challenges, Interpipe remains focused on growth through innovation, investment, and the creation of differentiated products that competitors do not offer.
• The resilience of the Ukrainian workforce continues to play a vital role in the company’s ability to keep production running under difficult circumstances.
