KEY POINTS
- Trump’s new tariffs on steel and aluminum imports face EU backlash.
- European steelmakers warn of major losses from restricted U.S. access.
- The tariffs have already caused uncertainty and rising steel prices.
European leaders have warned of possible retribution in response to U.S. President Donald Trump’s decision to slap tariffs on imports of steel and aluminum.
EU slams U.S. tariffs on steel and aluminum imports
Trump’s decision from February 10 that levies a 25% tariff on steel and a 10% tax on aluminum, regardless of origin, will be addressed by the European Commission.
Ursula von der Leyen, president of the European Commission, declared on February 11 that “unjustified tariffs on the EU will not go unanswered.”
There are no country exemptions to the levies, which go into force on March 12.
The European Steel Association (Eurofer), based in Brussels, issued a warning that the EU would lose up to 3.7 million metric tons of steel exports to the United States.
“With 16% of all EU steel exports, the U.S. is the second-largest export market for EU steel producers,” stated Dr. Henrik Adam, president of Eurofer.
According to U.N. figures published in a *Politico* study, the EU shipped 3.8 million metric tons of steel and aluminum to the United States in 2023, ranking third in terms of exports.
Additionally, Eurofer downgraded its predicted 2025 steel consumption rebound from 3.8% to 2.2%, predicting that economic uncertainty would continue to impact the European steel industry until 2026.
Tariffs end Ukraine’s exemption amid ongoing war
Ukraine’s exemption to process steel in Bulgaria and Italy for export to the United States is eliminated by the tariffs.
According to a White House declaration, the exemption primarily benefited EU-based producers even though it was intended to aid Ukraine.
The statement said that while imports from the EU have grown from 11.2% to 14.8% of total U.S. imports since 2021, imports from Ukraine have stayed constant at 0.5%.
According to Oilprice, some mills have halted U.S. transactions as a result of the tariffs’ impact on the European steel markets.
A trader told MetalMiner that Mills is pulling back owing to concerns about retroactive taxes in addition to the tariffs.
Prices for steel have started to rise; for example, hot rolled coil for May delivery now costs €650 ($650) per metric ton, up from €630–€635 ($660–$665) in late January.
According to some observers, the concern is exaggerated.
One industry source stated, “Before panicking, let’s see if it materializes.”
The impact of the tariffs may be lessened because many purchasers continue to source premium European steel because domestic steel supply cannot keep up with demand in the United States.
