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| SteelOrbis |
New Tariffs Expected to Severely Impact European Steel and Aluminum Trade
The European Union (EU) could face up to €28 billion in lost exports following the first round of new US steel and aluminum tariffs, according to a Bloomberg report. The tariffs, announced by former US President Donald Trump, are expected to impact a significantly larger range of products than the previous round in 2018.
Expanded Tariffs on Steel and Aluminum Derivatives
Maroš Šefčovič, European Trade Commissioner, stated that the situation remains fluid, and the extent of tariffs could still change. However, European market analysts predict that the number of affected products will be four times greater than in 2018, as the new tariff list includes derivative steel products.
On February 10, Trump announced a 25% tariff on steel and aluminum imports from trading partners that currently benefit from duty-free exemptions or tariff-rate quota agreements, such as the EU. The policy shift has raised concerns about major disruptions to transatlantic trade.
EU Steel Exports to US Under Threat
In 2024, EU steel exports to the US totaled 3.89 million metric tons, with a trade value of $6.99 billion, according to US Department of Commerce census data. The new tariffs could drastically reduce this volume, forcing European producers to seek alternative markets or face financial strain.
The potential losses highlight the volatility in US-EU trade relations and the broader implications for global steel markets. Industry stakeholders are closely monitoring developments to assess the full economic impact.
