Automotive
Cliffs inks longer-term contracts with US automakers hedging tariff inflation: Report
Written by Laura Miller
August 15, 2025
Cleveland-Cliffs Inc. has reportedly signed “unusually long” fixed-price supply agreements with multiple US automakers.
According to a Bloomberg report on Friday afternoon, the Cleveland-based steelmaker has inked contracts to supply steel sheet to General Motors and other car companies in the US for up to three years. The article cited sources privy to the deals who wished to remain anonymous.
American steelmakers typically renew contracts with automotive customers on an annual basis. (And often right around the time of SMU’s Steel Summit in August.)
The “unusually long duration” of the contracts is the auto industry’s move to protect itself from growing inflation concerns, according to the Bloomberg article.
President Trump’s tariffs on steel, aluminum, automobiles, etc., are fueling the flames of inflation. “Automakers are now taking the chance to lock in a fixed steel price as tariff costs risk sapping demand for new cars,” Bloomberg reported.
It wasn’t clear with which car companies Cliffs had reached the deals. The steelmaker is the largest US supplier of automotive steels, serving the Detroit Big Three — GM, Ford, and Stellantis — as well as other North American automakers.
Cliffs, GM, and Ford all declined to comment. Stellantis didn’t respond to a request for one.
Laura Miller
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