Steel suppliers to the United States automotive sector can benefit from stable or growing demand in 2026, despite declining demand for electric vehicles and a projected decline in overall vehicle sales.
On October 14, General Motors (GM) announced that the refusal to sell electric vehicles in the United States could lead to a decrease in demand for electric vehicles in the United States. the government's provision of tax incentives for the purchase of electric vehicles in the amount of 7,500 USD will affect the reduction of the company's profit for the third quarter by 1.6 billion dollars. In the previous quarter, GM wrote off $1.1 billion in losses due to the impact of President Trump's tariffs on its supply chain.
Automakers are trying to adapt their strategies to the new regulatory environment. The loss of consumer incentives for electric vehicles at a time when higher interest rates continue to undermine consumer confidence will hurt sales. Automakers now want emissions targets to be lowered, allowing them to refocus on cars and trucks with internal combustion engines.
- This article was first published in the October issue of the MEPS International Steel Review. The monthly report provides subscribers with information on steel prices, indexes, market commentary, and forecasts from key global steel markets in North America, Europe, and Asia. Contact the MEPs for detailed information on how to subscribe.
S&P Global recently upgraded its rating in the United States. passenger car sales forecast for 2025: from 15.7 million units to 16.1 million units. This volume will grow for three consecutive years. This is largely due to purchases that were postponed to a later date in anticipation of the inflationary effect of tariffs and the cancellation of incentives for electric vehicles.
According to Ward's Intelligence, passenger car sales in the United States rose 3.8% year-on-year in September. During this period, the market share of EVs was a record 12%. However, it is currently projected that sales will decrease by about 5%, to 15.3 million units, in 2018-2026.
However, the 25 percent duties imposed by President Trump on car imports led to a 38% reduction in car imports in April and significantly reduced it this year. The following months may contribute to an increase in the share of American automakers in the domestic market.
Falling steel prices affect contract negotiations
Respondents from the European Parliament in the United States said that steel supplies to the automotive sector were stable in October. In its recent financial report for the third quarter, Cleveland Cliffs reported that automotive production volumes
