Italian steel trade association Assofermet is warning that new EU policies in response to tensions with the United States could severely disrupt supply chains and weaken Europe’s manufacturing sector.
“After months of negotiations, the agreement reached between the EU and the US has not resolved the issue of tariffs on steel and aluminium, which have remained at 50% since 4 June … This situation risks generating a massive relocation of exports to Europe, putting pressure on the EU market,” Assofermet says in a note sent to Kallanish.
The association is renewing its appeal to Italian and European authorities to ensure that any new measures remain balanced, proportionate, and effective, protecting not only European steel producers but also downstream users. At stake, the association stresses, is the competitiveness of the European industry and its ability to remain integrated within global trade flows.
The debate on steel is focused on the replacement of the current safeguard system, set to expire at the end of June 2026. The European Commission is to propose a new, allegedly more balanced, trade defence instrument. Assofermet is instead suggesting a mechanism based on annual and quarterly quotas, not tied to specific exporting countries. Such a framework would better balance the protection of Europe’s steel producers with the need to guarantee sufficient supply for EU manufacturing.
The association warns that excessive import restrictions could have “devastating effects” on the European industry, already under strain from high energy costs and the introduction of the Carbon Border Adjustment Mechanism (CBAM).
Earlier this week, the association urged the European Commission to rethink the protectionist and environmental policies currently under discussion, underlining the necessity to ensure a balance between environmental goals, industrial resilience, and the protection of Europe’s metals and steel value chain. Without such a balance, the association warned, the EU risks undermining the competitiveness and sustainability of its own manufacturing base.
Natalia Capra France
