EU Steel Exports to U.S. Slump as Tariff Dispute Deepens

Key Moments

EU steel exports to the U.S. fell 30% between June and December 2025 compared with the same period a year earlier.
The U.S. continues to impose 50% tariffs on EU steel despite a broader EU-U.S. trade deal that set a 15% blanket tariff on EU goods.
Further EU-U.S. steel talks are on hold as Washington ties progress to full implementation of the wider trade agreement.

Tariffs Drive Sharp Drop in EU Steel Shipments

European steel exports to the United States declined 30% between June and December 2025 versus the same months in the prior year, according to Eurostat figures compiled by Eurofer, the Brussels-based steel industry association.

The slump highlights the impact of the United States’ 50% tariffs on European steel, which remain in force even after the European Union and the U.S. concluded a trade agreement in July 2025 that set a general 15% U.S. tariff on EU products. Steel was specifically excluded from that broader arrangement, and discussions on easing the duties have not advanced.

“A 30% drop in steel exports to the US within just six months is a clear signal that the blunt 50% tariffs imposed by the US government on EU steel are damaging our industry,” Eurofer Director general Axel Eggert said.

“The US decision to include EU downstream steel products, such as machinery, will have another huge negative impact on us and our European customers,” he added.

Scope of U.S. Trade Measures on Metals

Washington applied 50% tariffs on steel and aluminum imports from the European Union in June 2025. In August, these measures were broadened to cover more than 400 individual steel and aluminum products.

The U.S. has presented these tariffs as a response to Chinese overcapacity in the global steel market, including in Europe.

Measure	Jurisdiction	Timing	Key Details
50% tariffs on EU steel and aluminum	United States	June 2025	Initial imposition on EU steel and aluminum imports
Extension to 400+ products	United States	August (2025)	Tariffs expanded to more than 400 steel and aluminum products
Trade deal with 15% blanket tariff on EU goods (steel excluded)	EU – U.S.	July 2025	EU goods face 15% U.S. tariff, but steel remains outside the deal
Proposal to tighten steel import regime	European Commission	7 October 2025	Halve duty-free quota; 50% tariff above 18.3 million tons per year

EU Response and Domestic Trade Measures

Amid concerns about rising Chinese exports being redirected from the U.S. to Europe, the European Commission proposed on 7 October 2025 to reduce by half the volume of steel that can enter the EU market duty-free. The plan would also levy a 50% tariff on imports that exceed an annual quota of 18.3 million tons.

This proposal still requires adoption by the EU legislator. In parallel, the European Commission aims to revive discussions with the U.S. administration to negotiate reduced tariffs on EU steel exports.

Steel Talks Entangled in Broader EU-U.S. Trade Deal

Progress on steel-specific negotiations has been constrained by U.S. demands that the European Union fully implement the wider EU-U.S. trade agreement concluded in summer 2025 by European Commission President Ursula von der Leyen and President Donald Trump. Under this arrangement, the EU committed to cutting tariffs on U.S. goods to zero, while accepting a 15% tariff on EU exports to the U.S.

With the EU’s internal legislative steps still ongoing and requiring the endorsement of both the European Parliament and member states, U.S. frustration has grown. Tensions have been further heightened by amendments introduced by EU lawmakers that could complicate the subsequent negotiations with national governments.

The European Parliament is expected to vote on the trade deal in March, which would initiate talks with member states on final approval.

Geopolitical Frictions and Regulatory Disputes

Talks on the European side stalled after the U.S. threatened in January to annex Greenland militarily from Denmark. Although the U.S. has moderated its language since then, the episode contributed to delays in the process.

Additional friction stems from the U.S. administration’s persistent efforts to obtain more flexible treatment under European digital regulations, which has created further obstacles for the negotiations.