The delay and continued uncertainty over the EU-US tariff agreement are further exacerbating the crisis in the European steel industry.
The 50% tariffs on steel in the US are adding fuel to an already explosive situation, exposing the industry to the risk of losing all of its exports to the US and facing a sharp reduction in trade flows redirected from the US market to the EU market.
The lack of a decisive and timely implementation of the Action Plan in the field of steel and metal products production further accelerates the deterioration of the situation in the industry, the European Steel Manufacturers Association says.
"We cannot continue to raise tariffs on steel in the United States at the level of 50%. As we lose our main export market, the European market is flooded with steel, which the United States no longer consumes. We are particularly disappointed by the lack of a joint EU-US approach to maintaining EU steel exports to the US and addressing the issue of reorienting trade towards the EU in the face of a huge global overcapacity, which is currently 5 times the total steel production in the EU. This excess disrupts entire value chains, undermining industrial resilience, defense capabilities, and the transition to a green economy," said Dr. Henrik Adam, President of the European Steel Producers Association (EUROFER).
"What is even more alarming is that while the US - regardless of the administration - has consistently pursued a bold industrial strategy, the EU has lagged behind it. The implementation of the Action Plan in the field of Steel and Metal production has not yet brought tangible results. All the potential benefits from the latest revision of the EU's protective measures on steel have been completely negated due to the low level of ambition and the disastrous effects of the US tariffs, which are just beginning to manifest themselves," added Dr. Adam.
Benefiting from lower energy costs, green subsidies, buy American steel policy, and strong trade protections Due to the resumption of steel tariffs, the U.
S. steel industry first regained price competitiveness relative to imports, and then invested in 8-9 million tons of new capacity. An increase in total tariffs to 50% is expected to further increase the utilization of domestic production facilities in the United States, providing volumes for new production lines by reducing imports and increasing domestic production. In contrast, the EU lost 10 million tons of production capacity in 2024 alone, the highest annual closure rate ever. Before the 50% tariff increase, the EU was the third largest
