BlueScope Steel, Australia's largest steelmaker, is poised to benefit from U.S. President Donald Trump's recent protectionist tariffs on steel and aluminum imports, as CEO Mark Vassella noted a 20% increase in steel prices since the announcement.

Despite concerns over potential Chinese steel dumping, BlueScope anticipates that the tariffs will positively impact its business, particularly in North America.

The company operates five businesses in North America, including the North Star mill in Ohio, which collectively produce around 3 million tonnes of steel annually.

In the six months ending December 31, 2024, North America accounted for 42% of BlueScope's revenue, generating A$309 million, while Australia contributed 39% with A$288 million.

BlueScope's primary steelmaking operation is the Port Kembla Steelworks in Australia, producing over 3 million tonnes of crude steel annually, with about 300,000 tonnes exported to the U.S.

Vassella emphasized the need for the Australian government to protect the local industry from potential steel displacement and urged for a strong anti-dumping regime.

He highlighted strong domestic demand for steel in the U.S., particularly from sectors such as construction, automotive, and manufacturing.

The tariffs are part of Trump's economic strategy to safeguard domestic jobs and boost the U.S. economy, despite the potential for increased consumer prices.

Prime Minister Anthony Albanese discussed the tariffs with Trump, who acknowledged considering an exemption for Australia.

BlueScope will pay an interim dividend of 30 cents per share on March 25 and announced a $240 million buyback extension over the next year.

Despite a 59% drop in net profit to A$179.1 million for the same period, BlueScope's results exceeded analyst expectations, leading to a 13% increase in share prices.

Most of the steel BlueScope sells in the U.S. is produced domestically, which is expected to contribute to a profit boost in North America due to higher prices.