Trump's Tariffs Hammer European Steel Exports

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

U.S. President Donald Trump's 50% steel tariffs on Europe has caused steel exports to the U.S. to drop by more than a third.

Negative Impact of U.S. Tariffs

European steelexports to the U.S. over the past year have dropped by more than a third due to the 50% tariff imposed by U.S. President Donald Trump in 2025.

The latest figures from the European Steel Association (EUROFER) show that steel exports to the U.S. fell by 34% year-on-year over the three quarters following the introduction of last year's tariffs, dropping from 2.93 million tonnes to 1.94 million tonnes. Despite a trade deal provisionally agreed between the U.S. and the European Union (EU) last year, steel and aluminium remain the only sectors still subject to 50% U.S. tariffs. According to Industrial Info Resources data, there are almost 1,500 steel and aluminum projects ongoing in Europe worth more than US$98 billion. Subscribers to Industrial Info Resources' Global Market Intelligence (GMI) Project Database can click here for the reports. 

Axel Eggert, director general of the European Steel Association (EUROFER), said: "One year on and the impact is clear: these tariffs are choking European steel exports to the U.S. and meaningful market access remains unresolved. Strong transatlantic cooperation remains in the interest of both sides, but we are still far from restoring balanced steel trade conditions. The U.S. must now deliver on its commitment to work with the EU to find a solution for steel, aluminium, and steel-containing products that protects both markets from overcapacity while ensuring secure supply chains between them, including through tariff-rate quota solutions. As long as there is no such solution, the agreement is worth nothing for the EU steel industry.''

A Glimmer of Hope

The figures come as the European Council and Parliament struck a deal to implement the tariff elements of the slow-moving EU-U.S. trade arrangement. The agreement also foresees discussions between the EU and U.S. on possible solutions for steel- and aluminium-intensive products, including tariff-rate quota arrangements and cooperation to address global overcapacity. However, it also allows the European Commission (EC) to suspend parts of the agreement if the U.S. continues applying tariffs above 15% beyond the end of 2026 on steel- and aluminium-derivative products. 

Importance of the Steel Sector

EUROFER said that the steel sector is worth 152 billion euro (US$176 billion) annually and underpins Europe's industrial economy. The steel industry directly employs around 293,000 people and supports over 2.5 million more jobs across European manufacturing value chains. However, it has been a difficult time for the sector in recent years. In a snapshot report for last year, EUROFER noted that at least 18,000 job cuts were announced, 9 million tonnes of capacity closed and crude steel production levels remained below 130 million tonnes. At the same time, import penetration peaked up to 30% for certain products. The reasons cited were record global steel overcapacity, unfair trade practices, high energy costs and lack of a level playing field on climate ambition, which it claimed "are eroding the EU's industrial base and its ability to act autonomously in an increasingly multi-polar, adversarial world."

Europe Acts to Protect Sector

In recent weeks, Industrial Info Resources reported that the EU will slash the amount of tariff-free steel imports by almost half to 18.3 million tonnes per year and double the tax on out-of-quota steel imports to 50%. The measures will apply to 30 categories of steel products imported to the EU from July 1 and are designed to protect Europe's struggling steel industry from the negative effects of a global steel surplus and cheap Chinese imports. According to Industrial Info Resources data, there are more than 600 steel mills and smelters in Europe, led by Germany, France and Italy. For additional information, see June 1, 2026, article - Europe Adopts Steel Industry Safeguards.

Key Takeaways

• President Donald Trump' s 50% steel tariffs on Europe has caused steel exports to the U.S. to drop by more than a third.
• Industrial Info Resources is tracking almost 1,500 steel and aluminum projects in Europe worth more than US$98 billion. 
• In 2025, at least 18,000 job cuts were announced and 9 million tonnes of capacity closed in Europe. 

About Industrial Info Resources

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).