The European Commission has announced swift countermeasures against the US decision to impose 25 percent tariffs on steel and aluminum imports from all countries without exceptions and exemptions, which officially come into effect today, March 12.
The commission pointed out that the new US tariffs target different types of semi-finished and finished products such as steel pipes and wires as well as other steel and aluminum products such as household products, machinery and electrical appliances. Additionally, the US will introduce a system by May 12 that will extend the list of steel and aluminum derivatives subject to 25 percent tariffs. Meanwhile, the tariffs will have an impact on EU exports worth €26 billion in total, accounting for about five percent of the EU’s total goods exports to the US. This will result in US importers having to pay up to €6 billion in import tariffs.
Starting from April 1, the EU will reinstate its 2018 trade measures targeting US goods worth €2.8 billion and 2020 trade measures targeting US goods worth €3.6 billion. The 2018 EU trade measures were put into effect back in June 2018, following the introduction of Section 232 tariffs by the US. However, the 2020 EU trade measures, which had been scheduled for implementation in June 2021, were suspended until March 31, 2025, following discussions with the US which agreed to suspend its Section 232 tariffs on EU exporters within a certain quota. Moreover, the EU has launched consultations with EU stakeholders today, March 12, to impose additional measures, which will target about €18 billion worth of US goods. Under the consultations, the appropriate products will be chosen for inclusion in the new countermeasures, ensuring disruption to EU businesses and consumers will be kept to a minimum. The consultations will be completed by March 26 and the additional measures will be implemented in mid-April.
In the meantime, Dr. Henrik Adam, president of the European Steel Association (EUROFER), has made some evaluations regarding the US steel tariffs.
Mr. Adam stated that the tariffs aggravate the already dire situation in the European steel industry and pose a serious threat to its future. If Europe’s steel industry disappears, so does its automotive, security and defense, energy infrastructure and transportation industries, he said, adding that Europe’s sovereignty is at stake. The EUROFER official pointed out that, under US President Donald Trump’s first administration, Sections 232 tariffs had led to a decrease in EU’s steel exports to the US by over 1 million mt. However, today, the situation in the European steel industry is much worse than in 2018. Therefore, the impact of the US tariffs is expected to be far greater. While global steel overcapacity reached record levels in 2024 and is bound to increase again this year, the EU market, which is already full of cheaper imports from Asia, North Africa and the Middle East, will be further flooded as steel intended for the US market will be redirected. It is crucial that the revised steel EU safeguard measures are robust and effective to respond immediately and decisively to counter further deflection of steel imports flooding the EU market, Mr. Adam concluded.