The European Steel Association, EUROFER, has urgently called for the swift enactment of effective trade measures as detailed in the European Commission’s Steel and Metals Action Plan. The association warns that failure to act promptly could lead to disastrous outcomes for the steel industry. This plea comes in light of the United States increasing its blanket tariffs on steel imports to 50%, which may redirect an estimated 27 million metric tons of steel away from the U.S. and toward Europe. EUROFER’s director general, Axel Eggert, expressed serious concerns over the current situation, noting import penetration in the EU has surged to 30% amidst declining demand.
He emphasized that without immediate intervention, the EU steel industry risks severe damage that could be irreparable. Eggert pointed out that around 3.8 million metric tons of EU steel exports are essentially blocked from the U.S. market due to these steep tariffs, which affect even the most competitive European steel products. To address the situation, Eggert highlighted the necessity for renewed negotiations between the EU and the U.S. to collaboratively tackle global steel overcapacity. With global excess capacity projected to reach 721 million metric tons by 2027, the impacts are already being felt, particularly with increasing pressures on steel prices stemming from an oversupply in the market.
The German steel association, WV Stahl, echoed similar sentiments, identifying the U.S. tariffs as a significant escalation in transatlantic trade tensions. Managing Director Kerstin Maria Rippel articulated that these tariffs present a heavy burden that would exacerbate the struggles of an already vulnerable economy. Traditional supplier countries may redirect their exports to Europe, intensifying the import pressures already faced by the continent. As the second-largest export market for EU steel, the stakes are high, particularly for Germany, which recently faced marked declines in exports to the U.S. since the initial tariffs were implemented.
In this challenging climate, calls for strategic actions to preserve the European steel market are more urgent than ever.