The new US measures that will be introduced on March 12, actually cancel all free trade agreements, withdrawal and exceptions for products that were applied to imported tariffs in 2018 previously introduced by President Trump. The President of the European Association of Steel manufacturers (Eurofer), Dr. Henrik Adam, said that about 3.7 million tons of exports from the EU would suffer from new duties directly, and another 23 million tons of materials from European steel supplied to the United States from other countries .
Dr. Adam said that the EU steel sector cannot afford to lose export sales during such weak domestic demand, or absorb the increased volume of imports. “Only in 2024, the EU steel industry had to close nine million tons of capacities, reducing more than 18,000 jobs,” he said, adding: “President Trump’s decree will inevitably aggravate the situation even more.”
Protection of profitability of steel industry EU
Eurofer wants the European Commission to tighten import quotas and extend the current protective measures after the expiration of their validity in July 2026.
If it does not take measures, any subsequent decrease in steel prices will damage the European steel industry, which already suffers from the consequences of a low profit margin.
Market participants were divided into opinions on the possible introduction of more tight control of imports in the EU. Many rifters and distributors are currently relying on inexpensive Asian materials for profit. This profit is already undermined by current low prices in the market and force of the US dollar in relation to euro and pound.
Attempts to evaluate the effect of tariffs
Many buyers have become looking back in 2018 to assess the possible influence of the new 25%duties of the United States. The complete influence of Section 232 of the United States was felt between its introduction in March and Pandemia Covid-19. The total import of steel from the EU to the United States grew by 1.2% to 4.73 million tons in 2018, before decreasing by 17.9% (to 3.89 million) in 2019. In 2020, affected by the Covid-19, imports in the United States from the EU decreased by another 35.3% to 2.52 million tons.
However, since consumption sectors began to satisfy the deferred demand, President Joe Biden agreed to replace 25%tariffs with the EU with a new tariff quota system. Import steel from the EU to the United States grew again, subsequently exceeding four million tons in 2022. Nevertheless, imports from the EU to the United States in the period 2022–2024 remained 13.8% lower compared to the pre -Tariff period of 2015-2017.
Now President Trump uses the opportunity to fully realize his previous ambitions to limit steel imports. Germany, the largest manufacturer steel in Europe (an increase of 5.2% to 37.2 million tons in 2024), may lose the most.
The manufacturers have become in Germany and in a wider EU region are now waiting for the results not only to revise the Bloc's protective measures, but also to the development of events on the other side of the Atlantic.
