US tariffs threaten the future of European steel industry – EUROFER

The 25% tariffs on all steel imports imposed by the US administration are worsening the already dire market environment for the European steel industry and posing a real threat to its future. This is stated in a statement by the European Steel Association EUROFER.

The industry expects the EU to respond with an effective review of steel safeguards that will mitigate the impact of US tariffs and ensure the long-term viability of the industry.

“President Trump’s ‘America First’ policy threatens to be a final nail in the coffin of the European steel industry. If European steel disappears, so too does European automotive, European security and defence, energy infrastructure, transportation and others. What is at stake is European sovereignty,” said Dr. Henrik Adam, President of EUROFER.

He reminded that during Trump’s first term, a major impact of Section 232 was already observed. Steel exports from the EU to the US fell by more than 1 million tons, while for every three tons of steel withdrawn from the US market, two tons went to the EU.

Now, Adam states, the overall situation on the European steel market is much worse than in 2018, and the new measures are more extensive, so the impact of these US tariffs will be much greater.

Firstly, the Trump administration has canceled all product exemptions and tariff quotas that the EU had previously agreed on. The bloc may now lose at least another 1 million tons of steel exports to the United States.

In addition, the general import tariff now also includes “derivative” steel products, reducing the potential for European steel exports by another 1 million tons.

Secondly, EUROFER believes that the EU market is already saturated with cheap steel imports from Asia, North Africa and the Middle East, and the situation will get worse. The US exported 18 million tons of steel under preferential treatment, and now these volumes can be redirected to the EU market. At the same time, the European steel industry lost 9 million tons of capacity in 2024 alone. There is also a possibility that even more steel products will be sent to the European market if the United States imposes additional reciprocal tariffs.

The association reminded that the EU has committed to review the current protective regime for steel by April 1. The EUROFER President emphasized that it is crucial that the revised EU measures are reliable and effective in order to respond immediately to further import rejections.

As GMK Center reported earlier, on March 12, the US tariffs on all imported steel and aluminum in the amount of 25% came into effect. The European Commission announced the introduction of counter-tariffs on US products worth €26 billion starting in April.