The European steel sector is on edge as the deadline of August 1 approaches for a crucial EU-US trade agreement. The European Steel Association (EUROFER) has urgently called for a deal to be struck by the deadline, warning that failure to do so will result in devastating 50 percent tariffs on EU steel exports to the US. In addition, EUROFER highlighted that the EU needs highly effective protective measures for steel considering the US tariffs to stop the flood of imports directed from the US.
According to EUROFER, these increased tariffs, reinstated and raised by the US earlier this year, could cripple the EU’s already struggling steel industry. The industry is currently battling a storm of global overcapacity, unfair trade practices, high energy and carbon costs, and collapsing margins.
With imports now making up 27 percent of the EU market, EUROFER stated that, for every three tons of imports blocked by the US, two were redirected to Europe, flooding the EU market with cheap, carbon-intensive products.
The current situation is not just an economic concern - it also threatens the EU’s climate goals. Cheap and high-emission steel from third countries undermines the bloc’s effort to transition to green steelmaking.