The return of protectionist policies in the United States risks destabilizing the global steel and aluminum market, with severe consequences for the European industry, according to Assofermet, the association representing Italian distributors of scrap, raw materials and steel products, which has released a position paper expressing its concerns. Starting from March 12, the Trump Administration will reintroduce 25 percent tariffs on imports of these strategic materials, directly impacting European Union exports and triggering a chain reaction in international trade.
The measure, formalized in proclamations 10896 for steel and 10895 for aluminum, not only removes previously granted exemptions but also introduces new tariff categories, expanding its negative impact on global supplies.
European steelmakers, historically known for exporting high-quality steels with performance standards superior to those produced in the US, risk being severely penalized. The association highlights the risk of a "domino effect" with possible repercussions such as:
- A collapse in EU steel and aluminum exports to the US, damaging European producers of high-quality steels, which are difficult to replace in the American market;
- An influx of Asian steel into the EU market, following the closure of the US to these imports, leading to price distortions;
- Increased production costs and inflation for the European steel industry, affecting the competitiveness of the manufacturing sector;
- A possible extension of the EU Safeguard measures on imports, with new restrictions that could extend beyond June 30, 2026, creating further market imbalances;
- The risk of a global trade war, with Washington ready to introduce reciprocal tariffs against countries imposing trade barriers on US products;
- The relocation of EU manufacturing to the United States to bypass tariffs and maintain competitiveness in the American market;
- A slowdown in the ecological transition of the European steel sector, due to rising costs and difficulties in sustaining investments in more sustainable technologies.
The association calls for the European Union to adopt a broader approach to protecting the steel industry, including not only raw material producers but also downstream companies, which are at risk of suffering the most significant economic damage. Additionally, it is necessary to closely monitor the potential redirection of Asian steel to the EU market and evaluate proportionate trade defense measures.
If Europe fails to act quickly, the risk is an irreversible loss of competitiveness in the steel and manufacturing sectors, with potentially devastating economic consequences. Finding a balance between protectionism and global market openness will be crucial to safeguarding the European industry, Assofermet stated.