European steel sector on high alert amid slow-moving trade negotiations

Published on 04/06/2025 - 17:52 GMT+2

The EU alloy assemblage was connected precocious alert connected Wednesday pursuing nan implementation of 50% US tariffs connected alloy and aluminium, a move that mightiness divert world alloy imports formerly heading to nan US towards nan EU. 

"With nan doubling of US broad tariffs connected alloy to 50% without exceptions, we expect monolithic deflection of nan 27 cardinal tonnes of alloy antecedently destined for nan US towards nan European market,” head wide of nan European Steel Association (EUROFER) Axel Eggert warned successful a statement.

“We are being flooded by inexpensive overseas steel,” he added, “without swift action, we will not conscionable beryllium underwater — we will drown.”

Kerstin Maria Rippel, nan main executive of nan German Steel Federation said nan 50% tariffs marked “a caller level of escalation” successful nan EU-US waste and acquisition conflict. 

“A 50-percent tariff connected alloy exports is simply a monolithic load connected our industry, arsenic it will summation unit connected an system already successful situation and will effect our alloy assemblage successful aggregate ways,” Rippel said.

On Monday, US President Donald Trump signed an executive order, which nan White House shared connected X, claiming that nan emergence of tariffs connected alloy and aluminium would “provide greater support” to US industries, and would “eliminate nan nationalist information threat” posed by imported alloy and aluminium. Last March, Trump had re-established tariffs connected alloy and aluminium, which were initially imposed successful 2018 and 2020 nether his first mandate. 

The alloy assemblage has already been struggling pinch Chinese overcapacities flooding nan EU market, but since nan US imposed tariffs crossed nan globe nan bloc is facing overcapacities from aggregate countries. Import penetration successful nan EU is up to 30% successful 2025 successful a discourse of depressed demand, Eggert claimed. 

In Brussels, nan unit has intensified pursuing Trump’s accrued tariffs astatine a clip erstwhile nan EU seeks to discuss a solution to its waste and acquisition conflict pinch nan US. “The 50% tariffs person intelligibly not helped nan negotiations astatine all,” said 1 EU diplomat.

On Wednesday, EU Trade Commissioner Maroš Šefčovič acknowledged successful an X station that nan 2 sides “are advancing successful nan correct guidance astatine pace”, and are “staying successful adjacent interaction to support nan momentum”, pursuing his gathering pinch his US counterpart, Jamieson Greer successful Paris connected nan sidelines of an OECD waste and acquisition ministerial. 

But quizzed by journalists later successful nan day, Šefčovič said he “strongly” regretted Trump's latest 50% tariffs connected alloy and aluminium, adding: “It doesn’t help, particularly arsenic we are making progress.”

A group of EU high-level experts, including Tomás Baert, waste and acquisition advisor to European Commission President Ursula von der Leyen, has been successful Washington since Monday to discuss nan method specifications that could thief nan EU and nan US break nan deadlock. 

Besides nan 50% tariffs connected alloy and aluminium, nan EU is besides facing a 25% tariff connected cars and a 10% levy connected each different imports. The US besides has launched respective investigations into pharma, semiconductors and aircrafts that could lead to further tariffs. Trump has further threatened to enforce a 50% tariff connected each EU equipment arsenic of 9 July if nan negotiations neglect to meet his expectations. 

The US and nan EU exchanged proposals 2 weeks ago, but some sides person dismissed nan other's offers. The EU offered a woody of zero-for-zero tariffs connected each business equipment and acquisition of strategical products specified arsenic US energy, tech and agri-products, whereas nan US expected nan EU to reappraisal immoderate of its regulations.