Eurofer calls for urgent EU trade measures in response to U.S. steel tariff hike

The European Steel Association, Eurofer, has expressed serious concern following the U.S. decision to raise Section 232 tariffs on steel imports from 25% to 50%. In a statement released today, Eurofer urged the European Commission to swiftly activate the trade defense instruments outlined in its Steel and Metals Action Plan to protect the EU market from a surge in redirected steel imports.

According to Eurofer, the tariff hike is likely to lead to a significant deflection of up to 27 million tonnes of steel previously destined for the U.S. into the European market. This situation, the association warns, mirrors the aftermath of the initial U.S. tariff measures introduced in 2018. Eurofer highlighted that global steel overcapacity remains at record levels, while import penetration in the EU has already reached 30% in a context of weakened demand.

“With the doubling of U.S. blanket tariffs on steel to 50% without exceptions, we expect massive deflection... without swift action, we will not just be underwater — we will drown,” said Axel Eggert, director general of Eurofer. “We need the Commission’s promised ‘highly effective trade measure’ as a lifeline, and we need it now. If we wait until 2026, when the current EU steel safeguard expires, much of our industry will already be submerged beyond recovery.”

Eurofer also raised alarms over the impact on European steel exports to the U.S., which currently total around 3.8 million tonnes annually. Under the new tariff regime, even highly competitive and high-quality EU steel products risk being priced out of the market.

“A negotiated EU-U.S. solution is paramount to preserve our exports at this critical moment for the European sector,” Eggert added. “The U.S. and the EU should resume negotiations, which stalled in 2024, to jointly address the issue of global overcapacity.”

Eurofer’s statement underscores its view that immediate action is essential to prevent long-term damage to the European steel industry and to ensure a balanced and sustainable trade environment.

Source: Eurofer, Photo: Fotolia