Already weakened by long-standing challenges, the European steel sector is now confronting what it views as an existential threat from the United States’ escalating tariff policy. The combination of direct tariffs on its products and indirect tariffs on its customers’ products has left the industry on edge, fighting for its long-term viability.
The first blow was the direct 50% tariff on EU steel imports, which severely hampered access to a key market. This exacerbated existing problems of global overcapacity and intense competition, putting mills across the continent under severe financial pressure.
The second, and perhaps more insidious, blow is the “derivative” products list. This policy harms the steel sector’s primary customers—the manufacturers of cars, machinery, and construction materials. If these customers lose business in the US due to new tariffs on their finished goods, their demand for European steel will plummet.
This creates a vicious cycle. The steel mills are hit once on their direct exports and again on the exports of their domestic clients. It is this double-impact that has transformed the situation from a serious challenge into what many perceive as an existential crisis.
The industry’s response reflects this sense of urgency. Eurofer’s call for a “strong new trade measure” and the UK unions’ push for a “pledge for resilience” are not routine lobbying efforts. They are distress signals from an industry on edge, warning that without immediate and powerful intervention, its future is in jeopardy.