The European Steel Association (EUROFER) has commented on the new trade deal between the US and the European Union, which slaps 15 percent tariffs on certain imports from the EU, with Axel Eggert, director general of the association, stating that further damage was prevented but the deal’s impact on the European steel industry remains uncertain.
European Commission President Ursula von der Leyen alluded to a quota system regarding steel exports to US, the details of which are still unclear. “If a zero tariff on our traditional exports to the US is confirmed, we would be going in the right direction,” stressed Mr. Eggert, highlighting the uncertainty.
According to EUROFER, as many EU exports such as machinery and vehicles are steel-intensive, the 15 percent tariff puts an additional burden on the steel industry. Data show that, in 2024, around 760,000 vehicles produced in the EU were exported to the US, meaning around 1 million mt of steel production in the EU, which may disappear as a result of the new tariff. With the implementation of Section 232 tariffs in 2018, the EU had already lost approximately 1 million mt of steel in exports to the US. Since 2018, the European steel industry has lost a staggering 30 million mt of steel in the EU internal market and in export markets, due to the effects of global steel overcapacity - driven by countries from Asia, North Africa and the Middle East - as well as the effects of US Section 232, EUROFER noted.
“The effects of the latest additional US tariffs on EU steel applied since March (25%) and June (50%) are already having a further destructive impact on the sector,” stated EUROFER. According to Mr. Eggert, “EU steelmakers cannot wait any longer and trust that the [Steel and Metals Action Plan] will be highly effective”.
