US trading partners are concerned about new tariffs on steel and aluminum

Industry associations and officials weigh the implications of the move

The US trading partners are concerned about Donald Trump’s decision to impose 25 percent tariffs on all steel and aluminum imports starting March 12.

In a statement issued on February 11, European Commission President Ursula von der Leyen said that she deeply regrets the decision to impose duties on European exports of these products.

As noted, unjustified duties against the EU will not go unanswered and will provoke firm and proportionate countermeasures. The EU will act to protect its economic interests.

“The Executive Order signed by U.S. President Donald Trump imposing a 25% blanket tariff on all steel imports is a radical escalation of the trade war launched under his first administration. It will further worsen the situation of the European steel industry, exacerbating an already dire market environment,” said Dr. Henrik Adam, President of the European Steel Association (EUROFER).

If all product-specific exemptions and tariff quotas are canceled now, the EU could lose up to 3.7 million tons of steel exports to the United States, the association said.

“The United States is the second largest export market for EU steel producers, accounting for 16% of total steel exports from the bloc in 2024. The loss of a significant portion of these exports cannot be compensated by exports to other markets,” said the EUROFER President.

He also expressed concern that this move could cause new deviations in trade flows. In 2024, the US imported about 23 million tons of steel products from third countries other than the EU. These volumes are likely to be massively redirected to the European market.

Adam insists that the EU needs to take decisive action to preserve the European steel industry. The Association expects the EU to take such key steps as an immediate review of the current safeguard regime and the continuation of the comprehensive system of tariff quotas.

On the sidelines of the international summit in Paris, Canadian Prime Minister Justin Trudeau said that the federal government would work with the Trump administration in the coming weeks to make sure it understands the impact of the tariffs on both sides. The country is the largest exporter of steel and aluminum to the United States, and is in its second trade standoff with Washington in a short time. Trudeau also said that if it comes to retaliatory tariffs, the response will be firm and clear.

The Canadian Steel Producers Association (CSPA) made its position public even after the tariffs were announced, on February 9. As noted, when Trump first imposed tariffs on Canadian steel in 2018, the association saw widespread disruption and damage on both sides of the border.

“The Canada-U.S. economy is highly integrated, with $20 billion in steel trade between our two countries and 40% of Canada’s steel imports coming from the United States,” CSPA said.

The association also reminded that Canada has been working hard to harmonize its trade policy with the United States. For example, the country has introduced its own Section 53 tariffs on Chinese steel imports and a system for monitoring all imports.

Moody’s Ratings believes that Indian steel producers will face increased challenges in exporting their products after the US decision on tariffs, as it will increase competition and oversupply in the market. High volumes of steel imports to the country have already reduced prices and revenues of local steelmakers.

At the same time, India’s Steel Ministry Secretary Sandeep Poundrick said earlier that the US move would not have a significant impact on the local steel industry. The latter has a strong domestic market, and exports to the United States are small. According to him, last year the country produced 145 million tons of steel, and 95 thousand tons were exported to the United States.

The Brazilian government hopes that it will be able to secure an exception this time, given that the US has a positive trade balance with the country. Last year, Brazil exported $4.5 billion worth of steel to the United States.

As GMK Center reported earlier, Donald Trump has ordered a 25 percent duty on all steel and aluminum imports to the country without any exceptions or exemptions. A number of industry associations, including Germany’s WV Stahl and UK Steel, expressed their concerns even before the official introduction of the duties.

The First Vice Prime Minister and Minister of Economy of Ukraine, Yulia Svyrydenko, said that the government is committed to working actively with the US to find an optimal solution to the steel and aluminum tariffs.