European Steel Association (EUROFER) President Dr. Henrik Adam stated that the new US tariffs on steel imports put the sustainability of the European steel industry at serious risk. “President Trump's 'America First' policy threatens to be the final nail in the coffin of the European steel industry. If European steel disappears, critical sectors such as European automotive, security, defense, energy infrastructure and transportation will suffer. It is not only our industry that is at stake, but Europe's economic sovereignty.”
EUROFER data shows that the Section 232 tariffs imposed during the first Trump administration caused a loss of more than 1 million tons of EU steel exports. At that time, two out of every three tons of steel blocked for export to the US were diverted to the EU market. Dr. Adam emphasized that current market conditions are much worse than in 2018 and that the impact of this new tariff regime will be much greater.
Major Loss Expected in EU Steel Exports to the USA
USA decision removes all product exemptions and Tariff Rate Quotas that the EU had previously negotiated. EU steel exports are already down by 1 million tons and this latest move is expected to result in a loss of at least another 1 million tons. Moreover, the general import tariff now also covers derivative steel products, further reducing EU export opportunities to the USA.
Simultaneously, with global overcapacity reaching record highs in 2024 and rising again in 2025, the EU market, already saturated with cheap steel imports from Asia, North Africa and the Middle East, will be further flooded as steel for the USA market will be redirected. The EU market, already under pressure due to low-cost steel imports from Asia, North Africa and the Middle East, could be further squeezed with tons of steel now blocked from being diverted to the US. Currently, the USA imports 18 million tons of steel under various trade agreements. But with the new tariffs, there is a risk that a significant part of this volume will be diverted to the EU.
According to EUROFER, in 2024 alone, 9 million tons of production capacity was lost in the EU and more than 18,000 people lost their jobs. The new tariff regime could deepen these losses even further. If the USA imposes additional retaliatory tariffs against EU steel, more steel will inevitably be diverted to the European market.
EU Prepares to Revise Safeguards by April 1
European Union has committed to revise existing safeguard measures against rising steel imports by April 1. Industry representatives argue that the EU should speed up this process and create a more effective protection mechanism.
EUROFER President Dr. Adam stated: “Today, while steel producers around the world have adopted strong policies to protect their industries, the EU has become one of the most vulnerable steel markets. Our producers are already struggling with high energy prices and strict carbon regulations, while under pressure from low-cost and carbon-intensive imports.”
EUROFER emphasized the need for a strong overhaul of the EU's steel safeguard measures and added, “Effective measures must be taken immediately to protect the EU market against import diversion. Our industry cannot afford any further delay.”
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