Europe’s ailing steel sector is reeling from a devastating double blow: a pre-existing crisis of overcapacity and cheap foreign imports, now compounded by an escalating and unpredictable US tariff regime. This combination of pressures is pushing the industry to its limits and prompting urgent calls for support and protection.
The sector was already in a precarious position before the latest US moves. Fierce competition, particularly from state-subsidized producers, had squeezed margins and threatened the viability of many European mills. The original US tariffs on raw steel added another layer of difficulty.
Now, the expansion of these tariffs to “derivative” products is seen as a new, existential threat. While it directly targets manufacturers who use steel, it has a powerful knock-on effect. If European-made goods containing steel become too expensive for the US market, demand for European steel will fall further, exacerbating the overcapacity problem.
This is why industry bodies and unions are mobilizing. The call in the UK for a pledge to back the country’s steel sector is a direct response to these dual threats. It’s an attempt to shore up domestic demand at a time when a major export market is becoming increasingly hostile.
Similarly, Eurofer’s demand for a “strong new trade measure” is aimed at protecting the entire manufacturing ecosystem. They recognize that the fate of the steel mills is intrinsically linked to the health of the factories they supply. Without a robust defense against this double blow, they fear the entire industrial chain could begin to collapse.