American steel tariffs could cost Europe €5bn in lost sales and put thousands of jobs at risk.
US president Donald Trump announced a 25% tariff on all steel and aluminium imports, signing an on Monday.
This move echoes a similar situation in 2018, during his first term, when Trump imposed a 25% tariff on steel and a 10% tariff on aluminium, including imports from the European Union. In retaliation, the EU levied tariffs on US goods worth approximately €2.8bn, targeting steel, aluminium, agricultural products and various other items.
In response to the latest announcement, European Commission president Ursula von der Leyen issued a on Tuesday 11 February 2025, expressing regret over the US decision. She declared, “I deeply regret the US decision to impose tariffs on European steel and aluminium exports,” and assured that the EU would take “firm and proportionate countermeasures.” Seeking to reinforce the EU’s stance, von der Leyen emphasised, “Unjustified tariffs on the EU will not go unanswered,” and affirmed, “The EU will act to safeguard its economic interests. We will protect our workers, businesses and consumers.”
The Brussels-based European Steel Association (Eurofer) has condemned the new tariffs as “a radical escalation of the trade war.” Eurofer president Henrik Adam pointed out that, although European steel producers had exemptions and the European Commission had negotiated a tariff rate quota (TRQ), EU steel imports to the US had already decreased by over 1m tonnes annually. Adam warned that if the new tariffs are fully enforced, meaning “if all product exemptions and TRQs are now removed, the EU could lose up to 3.7m tonnes of steel exports to the US,” estimated at around €5bn.
Furthermore, Adam stressed the importance of the US market for European steel producers, saying, “The US is the second biggest export market for EU steel producers, representing 16% of the total EU steel exports in 2024. Losing a significant part of these exports cannot be compensated by EU exports to other markets.”
In 2024, the EU steel industry was already struggling, with 9m tonnes of capacity closed and over 18,000 jobs lost. Adam added that the new executive order would only worsen the situation.
Eurofer estimates that the European steel industry generates a turnover of around €191bn and directly employs approximately 303,000 skilled individuals, producing an average of 140m tonnes of steel each year.
Paperjam reached out to ArcelorMittal, one of the largest steel producers in the European Union, with several steel production sites across the grand duchy, for comment.