New trade agreement with the US does not protect the EU steel sector – EUROFER

The European Steel Association EUROFER has criticized the new trade agreement between the EU and the US, saying that it does not solve the key problem – 50% tariffs on European steel imports to the US remain in force. According to the association, despite the diplomatic efforts of the European Commission, the EU steel sector continues to suffer significant losses.

EUROFER Director General Axel Eggert said that the agreement only limits further deterioration of the situation but does not guarantee stability in the industry.

“If the 50% duty remains in place, EU steel exports to the US will remain economically unviable,” he stressed.

Previous statements by EU leaders about a transition to a tariff quota system similar to that applied in relations with the UK remain at the level of declarations. At the same time, there is no clear information on whether such a system would provide for zero tariffs within the quotas.

EUROFER notes that steelmakers have already lost more than 1 million tons of exports to the US since 2018, when restrictions were introduced under Section 232. The situation is now complicated by additional duties of 25% and 50% introduced in March and June 2025. According to the association’s estimates, a 15% duty on products with a high steel content, such as cars and machinery, could further reduce demand for 1 million tons of steel from the EU.

EUROFER expects the European Commission to take decisive action within the framework of the promised Steel and Metals Action Plan. In particular, this refers to protective measures that will allow production capacities to be loaded by at least 85% and ensure the strategic stability of the EU steel industry.

As a reminder, the EU and the US recently reached a new trade agreement that should stabilize economic relations between the world’s two largest economies. The agreement provides for a fixed customs duty of 15% for most goods exported from the EU. It covers key industries – automotive, pharmaceuticals, microchip manufacturing – and is a “ceiling” without additional fees, which will ensure predictability for businesses on both sides of the Atlantic.