EUROFER calls for emergency measures as US Tariffs crush EU steel exports
The delay and ongoing uncertainty about a deal on tariffs between the EU and the U.S. further worsens the crisis for the European steel industry.
U.S. steel tariffs at 50% are adding fuel to an already explosive situation, putting the sector at risk of losing all its exports to the U.S. and facing a surge of deflected trade flows redirected from the U.S. to the EU market.
The lack of bold and timely implementation of the Steel and Metals Action Plan is further accelerating the sector’s deterioration, says the European Steel Association.
“We cannot continue with U.S. steel tariffs at 50%. As we lose our major export market, the European market is being flooded by the steel the U.S. is no longer absorbing. We are particularly disappointed by the absence of a joint EU-U.S. approach preserving EU steel exports to the U.S. and tackling trade diversion towards the EU on top of massive global overcapacity — now 5 times larger than the EU’s total steel production. This glut is destroying entire value chains, undermining industrial resilience, defence capabilities and the green transition”, said Dr Henrik Adam, President of the European Steel Association (EUROFER).
“What is even more concerning is that while the U.S. — regardless of the administration — has consistently pursued a bold industrial strategy, the EU has fallen behind. The implementation of the Steel and Metals Action Plan has yet to deliver tangible results. Any potential benefits from the last EU steel safeguard review have been entirely wiped out due to its low level of ambition and the disastrous impact of the U.S. tariffs, which is only beginning to materialise”, added Dr Adam.
Benefitting from lower energy costs, green subsidies, Buy U.S. steel policy and strong trade protection with the reactivation of steel tariffs, the U.S. steel industry first regained price competitiveness versus imports, and then has invested in 8-9 million tonnes of new capacity. The increase to 50% blanket tariffs is now expected to further boost U.S. domestic capacity utilisation securing volumes for newly built production lines by reducing imports and ramping up domestic output. In stark contrast, the EU lost 10 million tonnes of capacity in 2024 alone — its highest annual closure rate ever. Before the 50% tariff hike, the EU was the third-largest exporter to the U.S. after Canada and Brazil, accounting for around 4 million tonnes of steel exports.
Meanwhile, EU policy responses fall short. The Affordable Energy Action Plan and the Clean Industry State Aid Framework have not delivered substantial energy price relief for energy-intensive industries. The root cause — the EU’s electricity market design, which continues to deliver uncompetitively high prices — remains unaddressed, despite being central to the Draghi report.
The most important initiatives of the Steel and Metals Action Plan are expected only after summer: in September, the new ‘highly effective trade measure’ to replace the current safeguard to protect EU steel capacities, and by December, a proposal to close major loopholes in the Carbon Boarder Adjustment Mechanism (CBAM) – including resource shuffling and also export leakage, which has already been delayed.
“The game changer for a business case in Europe is not there yet. If these key measures on trade and CBAM are addressed by the European Commission as half-heartedly as energy prices, we will inevitably continue to see more capacity closures, job losses, and stalled decarbonisation projects. If that happens, there will only be losers: EU steel producers wiped out by cheap, carbon-intensive imports, and an EU transition and climate ambition that falter without solid industrial foundations”, concluded Dr Adam.
EUROMETAL 75th Anniversary: Political will requires political action
This article is part of a series on steel distribution association EUROMETAL’s 75th Anniversary conference 2-3 July, discussing challenges and opportunities for the sector from its policy background; trade protection; the Carbon Border Adjustment Mechanism; green steel; and the evolving role of European steel distribution.
Distributors attending European steel distribution association EUROMETAL’s 75th anniversary conference last week identified both challenges and opportunities from the sector’s changing regulatory landscape, with many believing distribution would have to adapt its role in the steel supply chain.
Following the United States’ lead, nations worldwide are continuing to pass protectionist measures for their domestic steel industries, leading many – especially more import- dependent distributors – to question the resilience of their position in regional and global supply chains in a new era of steel market isolationism and regionality.
Distributors have certainly suffered under prevalent uncertainties so far this year. Already in what has commonly been termed a ‘crisis,’ the European steel industry has seen changes to its safeguard and anti-dumping framework; tariff offensives from the US on both steel exports and their dependent markets; an uncompetitive demand and consumption landscape; and of course the upcoming definitive period of the Carbon Border Adjustment Mechanism (CBAM) and its role in securing the decarbonisation strategy of domestic industries.
It is no surprise then that many in the distribution segment lament the concurrence of these different factors, pulled by pressures from the top and bottom of the steel supply chain. That said, while conference attendees painted a negative picture of how the European steel industry reached this point of crisis, many speakers at EUROMETAL’s anniversary were optimistic about a recent change in tone from European political authorities. Representatives from steel producers in particular identified new policymaker recognition of the issues plaguing the steel sector, with a desire to support not only steel producers, but also the distributors facilitating the processing and movement of steel to its consuming industries.
Market participants at the event shared insights into ongoing consultations on lead market generation for green steel, namely low-carbon and “Made in Europe”; labels under the Clean Industrial Deal and upcoming Industrial Accelerator Act; simplification and downstream extension proposals surrounding CBAM, and import monitoring and the proposed long-term replacement to the European steel safeguard system.
Attendees at the conference have been consulting with the European Commission (EC) to ensure that new initiatives respect the real dynamics of the steel industry and trade, but while this new protective “political will” was widely cited by relevant parties, a common theme surrounded doubts on policymakers’ powers to execute pragmatic change, stymied by an abundance of overly technical, defeatist, or naïve arguments from the European civil service.
“I see keen policymakers that are repeatedly subjected to negative arguments from their services,” said Dr Henrik Adam, President of Eurofer. “We have the political will – the question now is: do we have the power to exert real change?”
“After three days with Commission staff I am completely brain-busted, many of them cannot understand the realities of our industry,” agreed Marcus Fix of service center DM Stahl.
“Sometimes I get the impression the European Commission wants to ride a white unicorn on a rainbow,” he continued. “They lack any urgency; we need to be fast but instead we’re stuck in regulatory hell.”
Adam admitted a degree of envy for American political dynamism, though was careful to clarify that he was in support of its style rather than content:
“While I am not a fan of the new way the Americans are conducting their business, the effectiveness of its policies on American reindustrialisation is evident”, said Adam. “The sentiment is important, the point is that we often hear a “no”; from Brussels and its services.
“The US has a “can-do” attitude, but in Europe we are often missing this “will to win”.”
Benjamin Steven Journalist, Steel
Tata Steel Europe CEO: deindustrialisation in Europe has already begun
The current state of the European steel industry, as well as the entire manufacturing value chain it supports, is marked by mounting challenges and growing uncertainty. Speaking at the EUROMETAL 75th Anniversary Conference, Henrik Adam, CEO of Tata Steel Europe, emphasised that deindustrialisation is not a distant risk – it is already underway. And the question is whether the European community wants to let it continue and make Europe dependent.
According to Adam, Europe’s industrial sector is the only one globally that is experiencing a consistent downward trend. While other regions are expanding their civil and processing industries, Europe is seeing plant closures and job cuts. “Job losses have already happened, more are being announced, and capacity is shutting down,” he warned.
European steelmakers operate under one of the strictest emissions frameworks in the world. While the global average carbon intensity is around two tonnes of CO2 per tonne of steel, many European mills perform significantly better. However, this comes at a cost, Metal Expert understands.
Europe’s ambition to decarbonise is not matched by global standards, putting EU producers at a disadvantage against imports from countries with lower environmental requirements and production costs.
“We already know of projects being set up to bypass EU rules,” Adam noted.
New low-carbon technologies are under development, but the scale-up from lab to industrial level will take time and require massive investment. Without a robust framework to manage exports and embedded emissions in downstream products, European mills will lose competitiveness after CBAM is fully implemented in 2026.
Energy costs remain one of the largest burdens for European producers. According to Adam, industrial electricity in Europe is, on average, 150% more expensive than in other regions, and industrial gas prices are more than double.
European producers transitioning to EAF technology are particularly exposed. He argued that Europe must establish a long-term, low-cost energy framework – or shift production of energy-intensive goods to regions within Europe where renewable power is cheaper. He cited southern countries like Spain, Portugal, and Greece as potential energy hubs.
Scrap metal is a vital input for low-emission steelmaking, but its availability in Europe is increasingly under threat. Currently, the EU exports around 19 million tonnes of scrap annually, a significant portion of which could be used domestically to reduce emissions, Metal Expert learnt.
“Scrap business is still lacking industrialisation, and also if you all [mills] convert [to EAF] in Europe to use more scrap, scrap will be easily a scarce resource,” he added.
Without safeguards, Europe could face a paradoxical situation – importing high-emission steel while exporting a key decarbonisation input.
Despite the challenges, Adam stressed that Europe still has the tools to secure its industrial future – but only if decisive action is taken. “It’s in our hands to ensure that our children and grandchildren have jobs in Europe that are not just about selling ideas or counting money,” he said.
Vlad Shementov
EUROMETAL’s 75th Anniversary: Tata’s Adam urges reversal of European de-industrialisation
Tata Steel Netherlands Holding BV executive chairman Henrik Adam emphasised the urgent need for Europe to reverse the ongoing trend of de-industrialisation at EUROMETAL’s 75th Anniversary conference in Luxembourg last week, attended by Kallanish.
Advancing technological innovation is critical to sustaining and revitalising the European industrial base. “In Europe we are surviving against global competition from low-cost subsidised countries … We are not asking for protection, we are asking for a fair playing field,” Adams stated.
He highlighted the severity of the European steel crisis, with 26 million tonnes of steel capacity closing between 2008 and 2023, and the loss of 25% of its steel workforce, with an additional 18,000 job cuts announced in 2024.
To remain competitive, Europe must strengthen trade defences against unfair practices, review and update the Carbon Border Adjustment Mechanism (CBAM), address high energy costs, and improve scrap availability.
Access to abundant fossil-free electricity is essential. Energy demand in the steel sector, which averaged 75 TWh/year between 2010 and 2020, is forecast to more than double to 165 TWh by 2030 and reach 400 TWh by 2050.
Lowering energy costs, increasing green subsidies, and robust trade protection are critical. Without effective measures, de-industrialisation will accelerate, Adams warned. However, he noted a clear political commitment at the European level to preserve the industry.
Global excess steel capacity is both structural and significant. Europe must prevent “CO2 free riding” through resource shuffling and circumvention, safeguard European steel exports, and avoid the relocation of downstream companies. New steel capacities being added in countries like India and China over the next decade could undermine Europe’s climate efforts, Adam concluded.
Natalia Capra France
Eurofer: US tariffs threaten European steel and European sovereignty
The imposition of a 25% blanket tariff by the United States’ administration on all steel imports exacerbates an already dire market environment for the European steel industry and poses a genuine threat to its future. The sector expects the European Union to respond with an effective revision of the steel safeguard measures that will mitigate the impact of the U.S. tariffs and ensure the longevity of the industry in the long-term, says the European Steel Association.
“President Trump’s ‘America First’ policy threatens to be a final nail in the coffin of the European steel industry. If European steel disappears, so too does European automotive, European security and defence, energy infrastructure, transportation and others. What is at stake is European sovereignty”, said Dr. Henrik Adam, President of the European Steel Association (Eurofer). “Under the first Trump administration, we already witnessed the huge impact of Section 232. EU steel exports to the U.S. decreased by over 1 million tonnes, while for every three tonnes of steel deflected from the US market because of Section 232, two tonnes arrived in the EU.
Today, the overall market situation for European steel is much worse than in 2018. These new measures imposed by Trump are more extensive, therefore the impact of the U.S. tariffs is likely to be far greater”, continued Dr. Adam.
Firstly, the Trump administration has removed all product exemptions and Tariff Rate Quotas that the EU had previously negotiated. With EU steel exports to the U.S. already having fallen by 1 million tonnes, the EU now stands to lose at least another 1 million tonnes of steel exports to the US. Moreover, the blanket import tariff also now includes ‘derivative’ steel products, reducing export opportunities for a further 1 million tonnes of EU products.
Secondly, with global excess capacity having reached record levels in 2024 and set to increase again in 2025, the EU market – already saturated with cheap steel imports from Asia, North Africa and the Middle East – will be further flooded as steel intended for the US market will be redirected. 18 million tonnes of steel were exported to the U.S. under preferential regimes and are now at risk of deflection towards the EU market. EU steel production, which lost 9 million tonnes of capacity and 18,000 jobs in 2024 alone, is at even greater risk. There is also the prospect that yet more steel will be deflected to the EU market if additional reciprocal tariffs are imposed by the U.S.
“Simply put, while all other countries – today the U.S. – protect their national steel production, the EU has had the most vulnerable market in the world”, said Dr. Adam. “Our producers already face the highest energy prices while having the highest climate ambition. Meanwhile, they are being undercut by cheaper, more carbon intensive foreign imports”, he added.
In view of the existential threat to European steel caused by the spill-over of global overcapacity, foreign subsidies and dumping, now compounded by the new U.S. tariffs, the EU has committed to revising the current EU steel safeguard regime by 1 April.
“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. The time has come”, concluded Dr. Adam.
Eurofer calls for revised safeguards amid Trump tariffs
European steelmakers’ association Eurofer says it is expecting the EU to urgently revise the existing safeguard regime in response to recently announced tariffs by the US on steel imports, Kallanish notes.
The association expects “the revision of the current EU safeguard regime with impactful measures as a matter of urgency to reflect the dramatic market and trade conditions,” Eurofer president Henrik Adam notes.
Earlier on Tuesday, European Commission President Ursula von der Leyen said the unjustified tariffs will trigger “firm and proportionate countermeasures”.
The Eurofer statement says the safeguards set up in 2018 in response to Section 232 have lost their effectiveness in the years since due to the increase of quotas despite decreasing demand. This has allowed imports to gain significant market share.
It is also calling for the continuation of a comprehensive tariffication system as an absolute necessity, due to the current EU safeguards ending in June 2026. Global steel excess capacity is meanwhile worsening and steel protectionism is increasing worldwide.
“Without an immediate tightening of the current safeguard quota regime, the deflection provoked by the new US steel tariffs will inevitably push EU steel capacity into additional idling and, ultimately, closure,” says Adam.
Eurofer notes that in 2024 alone, the EU steel industry closed 9 million tonnes/year of capacity.
“The Executive Order by President Trump will inevitably further exacerbate the situation,” Adam adds.
Under the current implementation of Section 232 tariffs, European steel producers have had exemptions and the European Commission negotiated a tariff rate quota (TRQ). Despite exemptions and the TRQ, EU-origin steel imports into the US decreased by over 1 million tonnes/year, Eurofer says.
If all product exemptions and TRQs are now removed, the EU could lose up to 3.7m t/y of steel exports to the US. The US is the second-largest export market for EU steel producers, representing 16% of total EU steel exports in 2024.
The association adds this could risk significant trade flow deviations, with volumes usually sent to the US now likely to be massively diverted into the European market.
“Already today, global steel overcapacity is being off-loaded massively on the vulnerable EU steel market at very cheap prices, mainly from Asia, North Africa and the Middle East. This is leading to the inability to invest in the green transition and ultimately de-industrialisation of Europe,” the association concludes.
Carrie Bone UK
