Global Cement News

US President Donald Trump threatened tariffs on imports from Canada, China, Mexico and the European Union this week. Tariffs to Canada and Mexico were announced on 1 February 2025 and then paused for a month to allow for negotiations. Ones to China have been implemented. Tariffs to the European Union have been proposed but nothing has happened yet. What does this mean for the cement sector?

Graph 1: Imports of cement and clinker to the US. Source: USGS. Estimated data for 2024.

The data suggests that whacking 25% tariffs on cement imports from Canada and Mexico would have an impact. The US imported 26.5Mt of cement and clinker in 2023. Based on United States Geological Survey (USGS) data from January to October 2024, imports in 2024 have fallen by 8% year-on-year but they still represent a large chunk of consumption. Türkiye has been the biggest source of imports over the last five years but Canada has been the second biggest supplier. Together with Mexico, it provided over a quarter of imports in 2023. A similar share is expected in 2024. Greece, a country in the EU, has also been present in the top five importing countries to the US during this time.

The Portland Cement Association (PCA) reinforced this view. In a carefully worded statement it took pains to point out alignment with the intentions behind the tariffs, such as appreciating that the administration was open to negotiation and appeared to be flexible. However, it warned that the moves could adversely affect energy and national security, delay infrastructure projects and raise costs. It pointed out the import share from Canada and Mexico, adding that this represented nearly 7% of the US’ cement consumption. It noted which states were the main entry points for cement imports from the two countries. Finally, it highlighted the high level of consumption (36%) that imports from Canada might account for in northern states such as New York, Washington and so on. Meanwhile, Mexico’s National Chamber of Cement (CANACEM) warned that the proposed actions might trigger a ‘competitiveness crisis’ in the US.

Holcim’s CEO, by contrast, nonchalantly told Reuters that he didn’t expect any impact by tariffs on his business. Miljan Gutovic described the group’s US operations as a local business with production happening in the country and equipment and spare parts all being sourced locally. This optimistic view is likely to be influenced by the company’s impending spin-off of its US business. The listing in the US remains scheduled for the first half of 2025 with no complications expected from tariffs.

Clearly, implementing tariffs on imports of cement and clinker from Canada and Mexico could cause a shortage in the US in the short term. This, in turn, could lead to higher prices for consumers in the US. This potential effect would be pronounced in border regions that are reliant on imports. It is worth noting that a number of production lines in both Mexico and Canada have previously been mobilised to meet the export market to the US. These lines would likely be mothballed if tariffs were to be implemented, unless they could find other markets. In the medium term though, as the World Cement Association (WCA) pointed out this week, the world produces too much cement. So it looks likely that the US cement market would adjust to a new equilibrium. Taxing imports from the EU would have a similar effect. Although it seems like it would be less pronounced for the US cement market unless it was in conjunction with tariffs to Canada and Mexico. It would certainly be bad news for cement producers in Greece.

Cement producers in the US look set to benefit from tariffs as demand for their products and prices could increase. There is a risk that too sudden a change to the import market could cause adverse market effects through shortages. Many of these companies are multinational groups with headquarters in foreign countries. However, the strength of the US market compared to elsewhere has prompted some of these businesses to become more ‘American’ through listing in the US or focusing merger and acquisition activity in North America.

At this point we’re stuck in a half-way house place where import tariffs have been threatened and negotiations are pending. The relatively muted stock market reaction to the tariffs and Trump’s swiftness in enacting pauses suggest that it is brinkmanship by the US administration. If this situation continues for any length of time then it will likely have an effect all of its own. In which case don’t expect any export-focused investment by cement companies in Canada and Mexico any time soon.

Egypt: Lafarge Egypt has appointed Khaled El Dokani as its CEO.

El Dokani has worked for Holcim group since 2004. He started his career with the building materials manufacturer as the chief financial officer of Lafarge Algeria. He became the Country Manager for Qatar in 2016. This was followed by Country CEO roles in Iraq, Nigeria and the GCC (UAE, Qatar & Oman). He holds a bachelor's degree in commerce and accounting from Alexandria University.

UAE: Lafarge UAE has appointed Ali Saad as its CEO.

Saad previously worked as the General Manager - UAE from 2023. He started his career working for Lafarge Canada. Financial management roles followed with Unisource Canada and Cemena in Bahrain before he joined Holcim group in 2010. He worked as the chief financial officer in Iraq and then held general management positions in Iraq, Jordan and the UAE. Saad is a graduate in finance and strategic management from McGill University in Canada. He also holds a Master of Business Administration (MBA) from the University of Quebec in Montreal, Canada.

UK: Material Evolution has appointed Nigel Shewring as its Director of Research and Development (R&D).

Shewring holds over 25 years of R&D experience in a global industrial coatings environment. He worked for AkzoNobel Powder Coatings from 2006 and then became the Group Director for R&D at Hempel in 2019. He holds a bachelor’s degree in chemistry from the University of Durham and a PhD in material science from Sheffield Hallam University in the UK.

Material Evolution produces an 'ultra-low carbon' cement product called MevoCem. It commissioned its Mevo A1 Production Facility in Wrexham in 2024.

US: The Portland Cement Association (PCA) has issued a statement following the US government’s announcement of proposed 25% tariffs on imports of cement from Canada and Mexico. The association lauded President Donald Trump’s stated goal of protecting the US cement industry, while also calling for careful consideration of measures to be taken.

President and CEO Mike Ireland said “While the US cement industry agrees with the President’s objectives of bolstering American manufacturing, increasing border security, and advancing the country’s energy independence, the industry believes 25% tariffs on cement imported from Canada and Mexico could adversely affect energy and national security while delaying infrastructure projects and raising their costs.” Ireland continued “The availability of affordable cement and concrete is vital to meet our country’s infrastructure needs and for the oil and gas sector’s expansion. Mexico and Canada play a crucial role in stabilizing US supply, so we appreciate that the administration is open to negotiations and taking a flexible approach to implementing trade policy.”