Bekaert expects ‘weakening demand’ in second half amid tariff pressures

Brussels – Bekaert SA expects a decline in demand in the second half of 2025 due to a host of challenges, in particular the increase in trade tariffs in the US.

“The introduction of tariffs and escalating trade tensions have created increasing uncertainty for Bekaert, its suppliers and customers," said the group its second quarter results 31 July.

Bekaert noted that there has been a further increase in the US steel tariffs, from 25% to 50% since the first quarter.

The higher cost, it said, has been “increasingly more difficult” to pass on through the value chain and has triggered delays in some orders.

Furthermore, “a significant deterioration” of the US dollar and Chinese renminbi have had an impact on the group’s euro-denominated consolidated sales and profits.

“Consequently, following a period of resilience in second quarter, the tariff uncertainty and weakening economic outlook has started to have an impact on demand,” said Bekaert.

The group is now anticipating "a weakening in demand" across many of its end markets in the second half 2025.

Over the first half of 2025, Bekaert said its Rubber Reinforcement business “managed the challenges of additional tariffs well, utilising local sourcing and production, alongside its global footprint.”

The segment’s earnings (EBITDA) dropped 10% year-on-year to €115 million, while consolidated sales fell 5.4% to €848 million.

Bekaert said the unit delivered “solid volumes and resilient margins” despite weaker truck tire markets and the broader tariff induced uncertainty.

The costs were partially offset by overhead cost reductions and high plant utilisation rates, the Belgian group said.

Volumes were down 1.5% compared with first half of 2024 but up 1% against the second half of last year.

Bekaert noted that volumes were robust in China but weaker demand in truck tires across all geographies negatively impacted the division’s tire cord volumes.

Volumes fell by 3.9% year-on-year in Europe and 5.2% in North America, it added.

The Rubber Reinforcement joint venture in Brazil achieved €84 million in sales in the first half 2025, down 1% compared to the same period in 2024.

Here, Bekaert said the significant negative currency impact of 14% was offset by higher volumes and pricing.

During the first half, Bekaert said its rubber reinforcement capital expenditure amounted to €26 million, which included “growth investments in India and Vietnam.”