EU steel exports to US fall 34% since tariff imposition

European steel exports to the US fell by more than one-third from July 2025 to March 2026 after the US imposed 50% tariffs, data from European Steel Association showed June 2, as producers struggle to maintain market access amid persistent trade tensions that threaten to reshape transatlantic supply chains.

EU steel shipments to the US fell 34% year over year to 1.94 million metric tons in the three quarters after tariffs took effect June 4, 2025, down from 2.93 million mt in the same period a year earlier, Eurofer data showed, with steel and aluminum remaining the only sectors still subject to the full 50% US tariffs.

The tariffs, which were later extended to cover additional steel-intensive downstream products, continue to weigh heavily on European steel producers and wider manufacturing value chains.

The trade measures have created significant cost pressures on European mills at a time when the region's steel industry faces challenges from high energy costs and competition from imports.

EC response

The data comes as the International Trade Committee gave a green light to two pieces of legislation implementing EU tariff commitments under the August 2025 EU-US Joint Statement.

The EU governments last week approved legislation implementing the EU-US trade arrangement, which includes safeguard provisions allowing the European Commission to suspend parts of the agreement if the US continues applying tariffs above 15% beyond the end of 2026 on steel and aluminum derivative products.

The agreement also foresees discussions between the EU and the US on possible solutions for steel and aluminum-intensive products, including tariff-rate quota arrangements and cooperation to address global overcapacity.

"One year on and the impact is clear: these tariffs are choking European steel exports to the US and meaningful market access remains unresolved," Axel Eggert, director general of Eurofer, said in a statement June 2. "Strong transatlantic cooperation remains in the interest of both sides, but we are still far from restoring balanced steel trade conditions."

Eggert said the US must now deliver on its commitment to work with the EU to find a solution for steel, aluminum 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," Eggert said.

Europe is expected to implement new safeguard measures by July 1 to protect its domestic market from potential trade diversion, as steel that would have been destined for the US seeks alternative outlets.

The safeguards are designed to prevent a surge of imports into the EU that could destabilize regional markets already dealing with weak demand and excess global capacity.

The old safeguards will expire June 30 because WTO rules limit safeguard measures to a maximum duration of eight years. The new system will maintain tariff-rate quotas but with significantly lower import allowances, while imports exceeding the quotas will face a 50% duty instead of 25%.

It also introduces stricter traceability requirements, including a "melt and pour" rule to identify the true origin of steel, helping the EU address global steel overcapacity while remaining compatible with international trade rules.

The EU first introduced steel safeguard measures in July 2018, after which Trump, in its first mandate as President of the US, imposed Section 232 tariffs on steel imports. The safeguards were implemented through tariff-rate quota, allowing a certain volume of imports to enter duty-free while imposing a 25% tariff on volumes exceeding the quota.

The trade disruption has widened the price gap between the EU and US steel markets. Platts, part of S&P Global Energy, assessed hot-rolled coil in Northwest Europe at Eur680/mt ex-works Ruhr on June 1, stable day over day, and HRC daily TSI US at $1,100/short ton on an ex-works Indiana basis on June 1, unchanged from May 29.