Eurofer Director General Axel Eggert noted that the steps taken by the European Commission to protect the EU steel sector have contributed to preventing damage to the EU, but emphasized that the current 50% US tariffs still place excessive pressure on the steel sector.
Eurofer stated that the tariff agreement between the EU and the US has limited the damage suffered by the EU steel industry under current conditions, but emphasized that as long as the high 50% tariffs remain in place, the pressure on European steel will continue to be dramatic. Eurofer noted that Commission President Ursula von der Leyen's statements regarding joint action between the EU and the US to combat global overcapacity and the possibility of a return to a tariff quota system for the US remain unclear and lacking in detail.
Axel Egger stated, "Commission President von der Leyen and Trade Commissioner Šefčovič have done their utmost to prevent further damage to the EU economy within the current geopolitical conditions. The impact on EU steel will remain significant. However, there is still hope for joint EU-US action to counter the destructive spillover effects of global steel overcapacity on EU and US markets,".
In its statement, Eurofer emphasized that many details regarding the EU steel industry remain unclear and that the industry is still facing a 50% tariff. Following her meeting with US President Donald Trump, Ursula von der Leyen stated, "The EU and the US face a common external challenge in steel and aluminum, namely global overcapacity. We will work together to ensure fair global competition. Tariffs will be reduced and a quota system will be implemented to reduce barriers between us.“ Von der Leyen also responded to a question about steel quotas, noting, ”Basically, we are returning to historical quotas, as in the UK, and creating a protective shield to deal with global overcapacity."
However, Axel Eggert warned, “If zero customs duties are approved for our traditional exports to the US, it means we are on the right track. But there is no clarity yet. As always, the devil is in the details.”
Eurofer noted that the 15% general customs duty imposes an additional burden on EU exports in steel-intensive sectors such as machinery and vehicles. In 2024, when a 2.5% customs duty was applied, approximately 760,000 EU vehicles were exported to the US, estimated to be approximately 1 million tons of EU steel. It is noted that the new 15% customs duty could significantly reduce this export volume. Additionally, if a 50% quota-exceeding customs duty is applied, this export could completely cease.
Eurofer announced that since 2018, the EU internal market and export markets have experienced a production loss of 30 million tons due to global steel overcapacity triggered by Asian, North African, and Middle Eastern countries, US Section 232 tariffs, and declining steel demand within the EU. It is noted that the additional US tariffs of 25% in March and 50% in June have dealt an even more devastating blow to the sector. The European Commission had committed to developing “a highly effective steel trade measure” in its Steel and Metals Action Plan, which it pledged to present by September 2025.
Axel Egger stated, “EU steel producers cannot wait any longer. We believe that the new measure outlined in the Steel and Metals Action Plan will be extremely effective for the sector. This measure will strengthen the EU's economic resilience and strategic autonomy and increase the EU's steel capacity utilization rate to approximately 85%.”
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