Spanish seamless steel tube producer Tubos Reunidos has temporarily suspended operations at its Texas plant due to the challenging market situation and the 50 percent tariffs imposed by US President Donald Trump on steel and aluminum imports, according to Spanish media reports.
Normally, tubes manufactured in Spain are shipped to the Texas site for final treatment and finishing. The company described the measure as difficult but necessary to preserve business sustainability and ensure responsible resource management.
The US currently accounts for 45 percent of Tubos Reunidos’ global sales, making the tariff measures particularly challenging for its profitability and supply chain.
Operations on minimal capacity
While the Texas plant will not be permanently closed, it will operate at minimal capacity until conditions stabilize, and financial guarantees are secured.
Tubos Reunidos explained that the tariffs have significantly increased costs, as its raw material requirements depend on imports subject to the new taxes.
Seeking alternatives in global markets
To offset the impact of US trade policy, the company is pursuing new contracts in India and Saudi Arabia to expand its international presence and diversify revenue streams.
Tubos Reunidos noted that it will continue exploring strategic alternatives to sustain operations and strengthen its position in key export markets.
