On Wednesday, President Trump announced broad-based baseline tariffs of at least 10% on all imported goods into the US, effective April 5. He also announced reciprocal — and much higher, percentage-wise — tariffs on import goods from certain US trade partners with big trade deficits. Levies were set at 34% on Chinese goods and 20% on EU goods, as well as 46% for Vietnam, 32% for Taiwan, 26% for India and 24% for Japan, among others.
Neither Russia nor North Korea were in the list of companies to be hit with tariffs, although there is probably little to no trade between the US and these countries.
Steel sector
Steel market participants in Europe were still assessing the impact of new tariffs for the industry. While no additional tariffs were added to steel on April 2, the US had imposed tariffs of up to 25% on imports of steel, aluminium and certain products containing steel and aluminium from the EU and other trading partners on March 12.
“So far there is no stacking [adding up of pre-existing and new tariffs] so steel tariffs for Europe remains at 25%,” the mill source in Europe said.
However, the tariffs are hitting one of major steel-consuming sectors in the EU – automotive.
The automotive industry could now witness combined tariffs of up to 45%: of which 20% will be under Trump’s new “liberalization” measures and a pre-existing 25% levy, announced in March.
Automotive sector accounts for around 20% of total steel consumption in the EU, according to Eurofer.
The US is the second-largest market for the EU vehicle exports after the UK. In terms of value, the US accounts for about one fifth of the EU export market, according to European Automobile Manufacturers Association (ACEA). In 2024, 757,654 new vehicles were exported from the EU to the US, worth €38.9 billion.
ACEA highlighted that European manufacturers export 50-60% of the vehicles they make to the US.
Meanwhile, total carbon steel exports from the EU in 2024 amounted to 15.8 million tonnes, with the US share being around 16% or 2.5 million tonnes.
Ursula Von der Leyen confirmed on Thursday the EU was already finalising a first package of tariffs targeting €26 billion-worth worth US goods for mid-April in response to US steel and aluminium tariffs that took effect on March 12.
No details on future measures, however, have been revealed so far.
The effect of the new blanket tariffs would further strain European steel industry that was already dealing with reduced margins, falling demand and rising costs, sources said.
