Representatives from the steel and metals industry raised strong concerns about the broader ramifications of US tariffs, including impacts on derivative products and the serious risk of trade diversion, during a high-level dialogue hosted by European Commission President Ursula von der Leyen on April 7. The meeting aimed to discuss the implications of US tariffs on steel, aluminum, and related derivative products, the EC said.
The meeting focused on gathering industry views and proposals for the most effective EU response to the US measures.
While the representatives welcomed the EC’s Steel and Metals Action Plan and the Clean Industrial Deal, they also suggested implementing a few points.
EUROMETAL, the association of traders and EU service centers, suggested using public procurement to prioritize EU-based steel content while supporting local manufacturing and innovation, particularly in sectors essential for the green transition and EU defense capabilities, EUROMETAL said in a letter sent to its members seen by Platts, part of S&P Global Commodity Insights.
The industry called for new trade defense measures for steel, beyond existing safeguards set to expire in June 2026, to counter potential export deflection from other major steel-producing countries. Participants also expressed concern about diminishing scrap volumes used for recycling in the EU and requested effective measures to retain sufficient volumes within the EU. They also underlined the importance of local content requirements, notably pointing at the huge potential of public procurement in this regard.
Additionally, participants supported the accelerated review of the Carbon Border Adjustment Measures to address remaining loopholes.
“President von der Leyen sent a clear signal: keeping aluminum production and recycling in Europe is critical to our continent’s future,” European Aluminium General Director Paul Voss told Platts on April 7 while commenting at the meeting. “We welcome this recognition at the highest political level and look forward to quick and effective action to stop scrap leakage, strengthen trade defense, and address the impact of US tariffs,” he added.
EUROMETAL also emphasized the strain on US downstream industries and logistics operators, which are already grappling with inflationary pressures on imported products and declining transport margins. With the US steel market being 25%-30% import-dependent, these protectionist measures could inadvertently undermine US competitiveness, contradicting their intended purpose. This context was vital for transatlantic negotiations moving forward.
Although Europe sends more goods to the US than it receives, the situation is different when it comes to services. This indicates that the service sector, especially in technology, could be the primary channel for Brussels to respond effectively.
