Trump’s duties on the steel risk slowing down one of the key sectors of the heavy industry of the euro area.
According to Eurofer, the association that represents steel producers of the old continent, about 1 million EU steel tons could be put at risk by the new duties USA 15% applied to European vehicles.
The effects of the US duties on steel
The figure is equivalent to much of the raw material used for the production of about 760,000 cars, namely the volume that Europe exported to the United States in 2024 when the duty was stopped at 2.5%.
To this is added the still unsolved problem of the duties to 50% on the direct export of steel and aluminum from the EU to the USA.
The European steel sector is not new to shocks: from 2018, Eurofer recalls, the EU has lost about 1 million export tons of exports to the United States, descending from 4.6 million to 3.8 million in 2024. A total of industry, the entire industry has lost 30 million tons between the internal and foreign market in the last 6 years, a contraction due to the global surcharge (in particular from Asia, North Africa and medium. East) and the drop in demand in the users.
The latest American measures accepted the problem: the duties of 25% introduced in March and those of 50% in June have already had a “destructive impact”, according to the association.
From duties to quotas
An unresolved knot concerns the quote system that should replace current punitive rates. The latest EU-UU-USA declaration left spiragli, but without defining precise times or methods.
Axel Eggert, general manager of Eurofer, while recognizing the efforts of the president of the Ursula von der Leyen Commission and Commissioner Maroš Šefčovič, underlines the need for “courageous actions” by Brussels to ensure preferential access to the US market and at the same time protect internal production.
The so-called “Ring-Fencing”, that is, the creation of barriers to defend the internal markets from foreign competition, requires close coordination between Washington and Brussels. Not surprisingly, the European Commission is preparing new commercial defense proposals for September.
In addition to the steel itself, the effects of the duties risk spreading along the entire value chain. Eurofer warns that the sectors downstream, from the automotive to the appliance, could undergo traits and procurement delays.
The studies mentioned by the Association, however, argue that the impact on end consumers would be “negligible” if Europe chose to defend its market with greater decision.
The agri -food in the viewfinder
The story of the duties does not only concern steel: even the European agri -food is penalized, as a agri -food Legacoop report. Sectors such as wine and olive oil have not been excluded from new 15% rates and therefore continue to suffer a loss of competitiveness.
On the contrary, some sectors such as pasta and hard cheeses (Grana Padano, Parmigiano Reggiano) have seen a reduction from 25% to 15%. However, perception in the sector remains negative. The wine sector in particular pays a high price: in the USA, since the beginning of 2024, the demand has dropped by 8.7% in volume and 8.5% in turnover. A dynamic that, together with the uncertainty of the markets and the depreciation of the dollar, is pushing more and more companies to ask for public support.
