Assofermet, the association representing Italian distributors of scrap, raw materials, and steel products, has raised alarms over the potential impact of the US reintroducing 25% tariffs on steel and aluminum imports. Set to take effect on March 12, the tariffs, reinstated under the Trump Administration, are seen as a serious threat to the global steel and aluminum market, particularly for European producers.
In a recent position paper, Assofermet expressed concern that the tariffs, formalized in Proclamations 10896 (steel) and 10895 (aluminum), not only remove previously granted exemptions but also introduce new categories of tariffs, thereby expanding their negative effects on global supply chains. This shift will directly impact EU exports and could set off a domino effect in international trade.
Key concerns raised by Assofermet include:
- A collapse in EU steel and aluminum exports to the US, which would particularly hurt European producers of high-quality steels, difficult to replace in the US market.
- An influx of cheaper Asian steel into the EU market, as US markets close to these imports, leading to price distortions.
- Increased production costs and inflation within the European steel industry, undermining the competitiveness of the manufacturing sector.
- A potential extension of the EU Safeguard measures beyond June 30, 2026, creating more market imbalances.
- The risk of a global trade war, with the US prepared to introduce reciprocal tariffs against countries that impose barriers on US products.
- The potential relocation of EU manufacturing to the US to bypass tariffs and maintain competitiveness in the American market.
- A slowdown in the ecological transition of the European steel sector due to rising costs and challenges in sustaining investments in sustainable technologies.
Assofermet has called for the European Union to adopt a broader strategy to protect not just raw material producers but also downstream companies, which are at a higher risk of economic damage from these tariffs. Additionally, the association stresses the need to monitor the redirection of Asian steel to the EU market and implement proportionate trade defense measures.
If the EU fails to respond quickly, Assofermet warns of an irreversible loss of competitiveness in the steel and manufacturing sectors, which could have devastating economic consequences. The association emphasizes that striking a balance between protectionism and global market openness will be crucial to safeguarding Europe's industrial future.
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