Eurofer warns US tariffs pose grave threat to European steel industry and sovereignty

The European Steel Association (Eurofer) has expressed strong concerns regarding the newly imposed US tariffs, warning that they pose a significant threat to both the European steel industry and the sovereignty of the European Union.

On March 12, the US government began enforcing a 25% tariff on all steel and aluminium imports, extending the duties to a broader range of goods, including components found in refrigerators, stoves, phones, and cars.

In a statement, Eurofer emphasized that these tariffs will exacerbate an already challenging market situation for the European steel industry, Caliber.Az reports, citing foreign media.

"The US tariffs threaten European steel and European sovereignty," the association said. "The US administration's imposition of a comprehensive 25% tariff on all steel imports exacerbates an already difficult market situation for the European steel industry and poses a real threat to its future." Eurofer also called for a strong response from the EU, urging a review of steel security measures to mitigate the impact of the tariffs and protect the longevity of the industry.

Henrik Adam, president of Eurofer, pointed out that during the first Trump administration, EU steel exports to the US fell by over 1 million tons. He noted that the current situation on the European steel market is far worse than it was in 2018. "The new measures introduced by Trump are more extensive, so the impact of the US tariffs is likely to be much stronger," Adam said.

Adam further warned that President Trump's "America First" policy could be the final blow to the European steel industry, which would have far-reaching consequences for other sectors in Europe. "If European steel disappears, so will the European automotive industry, European security and defence, energy infrastructure, transportation, and others. European sovereignty is at stake," he added. He also criticized the EU's vulnerability, noting that while other nations are safeguarding their steel industries, the EU has the most exposed market in the world.

The EU could face even greater losses, with Eurofer estimating that it could lose at least another 1 million tons of steel exports to the US in addition to the 1 million already lost under previous tariffs. Moreover, the new duties apply to derivative steel products, which could result in a further loss of another 1 million tons in export opportunities for the EU.

The situation is further complicated by the oversaturation of the European market with cheap steel imports from Asia, North Africa, and the Middle East. According to Eurofer, the EU market could see a massive influx of steel, with 18 million tons of steel that was previously exported to the U.S. under preferential treatment now at risk of being diverted to the EU market.

The European steel industry has already faced significant challenges, losing 9 million tons of production capacity and 18,000 jobs in 2024 alone. With the new tariffs and the threat of additional retaliatory measures from the US, the situation remains precarious. Eurofer warned that the EU steel sector could face even greater losses if the US imposes further duties.

By Tamilla Hasanova