EU–U.S. Trade Deal Leaves European Steel Industry Under Pressure

The recently announced EU–U.S. trade deal has raised concern within Europe’s steel sector, which continues to face a disproportionately heavy burden. While the agreement reduced tariffs on many EU goods, steel exports to the U.S. remain subject to a steep 50% tariff, unchanged from previous levels. In contrast, most other goods now face a more standard 15% rate.

In 2024, the EU exported nearly 3.8 million tonnes of steel to the U.S., much of which is now under threat. Industries like automotive manufacturing, which alone accounts for roughly 1 million tonnes of steel exports, are also affected by the 15% duty, potentially weakening demand and disrupting supply chains.

The European Steel Association (EUROFER) has warned that the deal, while politically necessary, offers little relief to steelmakers. The lack of a clearly defined quota system, which was proposed to help cap duties on EU steel, adds to the uncertainty. Until such mechanisms are clarified and implemented, investment and planning across the sector remain difficult.

Adding further pressure, global steel overcapacity, especially from China, continues to flood European markets. Combined with sluggish domestic demand, rising energy costs, and raw material challenges, European steel producers find themselves navigating a highly volatile and unbalanced trade environment.

Unless tariff relief or clear quota agreements are introduced soon, the steel industry could face long-term setbacks despite broader EU–U.S. trade improvements.

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