EUROFER Urges Immediate Action Over 50% US Steel Duty

Growing Threat to European Steel Industry

EUROFER, the European Steel Association, is sounding the alarm as the US increases its steel import tariff to 50%. The European market is facing a critical threat of being flooded with cheap steel, previously bound for the US. Without quick intervention, the EU’s steel sector could face severe consequences, warns EUROFER.

The Risk of a Flooded Market

The US decision to double its blanket tariff on steel imports is expected to redirect approximately 27 million tons of steel to Europe. With weakened demand and imports already making up 30% of the market, this shift could overwhelm the European steel industry. EUROFER’s Director, Axel Eggert, compares the situation to the 2018 tariff crisis when the US first introduced tariffs, resulting in an influx of steel into Europe.

This increase in steel imports could severely harm the European market, as low-cost foreign steel could undercut local producers. Eggert stresses that immediate action is essential. The European Commission must implement the promised trade measures to prevent a complete collapse of the industry.

European Steel Exports Under Threat

In addition to the challenges posed by steel flooding the market, EUROFER warns that the 50% tariff could also impact European steel exports to the US. Approximately 3.8 million tons of high-quality European steel are at risk of becoming uncompetitive under the new duties. This could lead to a dramatic decline in exports, further harming the EU steel industry.

EUROFER advocates for renewed EU-US negotiations to address the global issue of steel overproduction and avoid further escalation in trade tensions.

SuperMetalPrice Commentary:

The recent decision by the US to increase steel tariffs is a clear example of escalating global trade tensions. For Europe, it signals the need for quick, decisive action to safeguard the steel industry and avoid market disruption. The situation highlights the ongoing challenge of overproduction in the global steel market and the complexities of international trade. EUROFER’s call for swift action is not only a response to immediate pressures but also a longer-term strategy to stabilize the European market and ensure its competitiveness in the global arena.