Wire and Cable in Flux: Trade Shifts, Steel Realignments, and the High-Tech Surge of Summer 2025

Article written by Daniela Di Maggio, Chief Editor, expometals.net, accurate as of 30 July.

With new trade pressures and industrial shifts affecting steel, metals, and their downstream applications, here are the key developments shaping the wire and cable industry as of summer 2025.

Trade tensions and European responses

U.S. President Donald Trump has doubled steel and aluminum tariffs from 25% to 50%, effective June 4, 2025, largely targeting imports from Brazil, Mexico, Canada, and the EU – with the UK remaining exempt at 25%. The European Commission struck a provisional deal with the U.S. to limit damages, but the impact on EU steel remains severe. As long as 50% tariffs are in place, European producers face major uncertainty, warns EUROFER. President von der Leyen hinted at a potential return to a tariff-rate quota system and joint U.S.– EU action against global overcapacity, but details remain unclear. Since the introduction of Section 232 in 2018, EU steel exports to the U.S. have dropped by almost 1 million tonnes. The latest hikes could eliminate the remainder entirely, with spillover effects on machinery and automotive sectors. A promised “highly effective” EU steel trade measure is due by September 2025.

Italy’s steel landscape evolves

On July 10, 2025, Metinvest, Danieli, and Italian institutions signed a €2.5 billion program agreement to redevelop the Piombino steel hub in Tuscany. The JV will establish a green steel rolling mill powered by electric arc furnaces and sourced from recycled input. The plant is expected to reach 2.7 million tonnes of annual capacity and marks a significant Italian Ukrainian industrial cooperation milestone. Meanwhile, in Taranto, Italy’s only fully integrated steel plant remains at the center of national debate. Acciaierie d’Italia is pursuing a possible transition to low-emission steelmaking, known as “Opzione A”, that envisions three electric arc furnaces, four DRI plants, and four carbon capture units, but this configuration would require over 5 billion cubic meters of gas per year – more than twice the capacity currently available. A floating regasification terminal has been proposed to fill this gap, but its deployment depends on industrial choices still under discussion. Further south, the Giammoro site in Sicily is undergoing a major industrial transformation. Duferco is investing €95 million to turn the former steel pole into a multi-purpose terminal and green energy hub.

Trump greenlights Nippon- U.S. steel deal, with golden share protections

In June 2025, Nippon Steel finalized its $14.9 billion acquisition of U.S. Steel, making the iconic American company a wholly owned subsidiary while retaining its name and Pittsburgh headquarters. The deal was approved by President Trump under a national security agreement that includes a U.S. “golden share,” granting veto power over major strategic decisions such as asset sales, plant closures, or relocation abroad. Nippon Steel committed to investing $11 billion in U.S. operations by 2028, reinforcing its domestic footprint. Trump’s initial opposition gave way to conditional support, reflecting a pragmatic balance between security concerns and economic gains.

Latin American steel under pressure from surging imports

Latin America’s steel industry is facing mounting difficulties due to falling domestic production and an influx of foreign steel and steel-containing products. “Crude steel output in the region has been declining steadily, while countries like China have drastically increased their exports of steel and manufactured goods containing steel – such as vehicles and machinery – into our markets over the past decade,” said Ezequiel Tavernelli, Executive Director of Alacero. Faced with this challenge, Tavernelli emphasized the need for urgent and coordinated policy: “Protecting our industry is not protectionism: it means defending our productive future and the wellbeing of millions of families.” Brazil illustrates the trend: crude steel output dipped 0.5% in June 2025, while imports soared 39.2%, exposing a growing trade imbalance.

China’s overcapacity and its global fallout

Surplus production from China continues to reshape markets: with overcapacity projected to hit 721 Mt by 2027 – according to Alacero – Chinese steel exports remain a destabilising force. Beijing has begun regulatory steps to curb price undercutting and unproductive competition, but analysts warn meaningful relief may take 1–2 years.

Key themes to watch in the cable industry: