The European Steel Association (EUROFER) has strongly condemned the latest Executive Order by the U.S. President, which imposes a 25% blanket tariff on all steel imports. However, according to Recycling Today, the Recycled Materials Association (ReMA) has confirmed that recycled steel and aluminum will remain exempt from these tariffs.
Adam Shaffer, Assistant Vice President of International Trade and Global Affairs for ReMA, stated that after a thorough review of the presidential proclamations issued on February 14, the reinstated Section 232 tariffs on steel and aluminum imports do not apply to recycled steel and recycled aluminum. He emphasized that scrap metal has been exempt from these tariffs since 2017 and will continue to be traded freely across U.S. borders.
Whereas, in a recent statement, Dr. Henrik Adam, President of EUROFER, criticized the U.S. government’s decision to impose a 25% blanket tariff on all steel imports, calling it a severe escalation of trade tensions. He warned that this measure would significantly harm the European steel industry, which is already struggling with a challenging market environment.
Previously, European steel producers benefited from exemptions and a Tariff Rate Quota (TRQ) under Section 232, yet EU steel exports to the U.S. had already dropped by over 1 million tonnes per year. The complete removal of these exemptions and TRQs could result in the loss of up to 3.7 million tonnes of EU steel exports to the U.S., which represents 16% of the EU’s total steel exports. Such losses cannot be offset by exports to other markets.
Furthermore, the tariff is expected to cause major trade flow disruptions. With the U.S. importing 23 million tonnes of steel from non-EU countries in 2024, these volumes may now flood the European market, worsening an already dire overcapacity issue. Cheap steel imports, particularly from Asia, North Africa, and the Middle East, have already forced closures of 9 million tonnes of EU steel capacity and led to 18,000 job losses in 2024.
Dr. Adam called for urgent EU action, including revising safeguard measures and implementing a comprehensive tariff system to prevent further industry decline. Without immediate intervention, he warned, the European steel sector faces further closures and deindustrialization.
Sources www.eurofer.eu www.recyclingtoday.com
